Abu Dhabi: Aldar Properties, Abu Dhabi’s largest real estate developer by assets and market capitalisation, said on Tuesday that Sami Haidar Assad, its chief executive officer, has resigned, citing “personal reasons”.
In a statement to the Abu Dhabi Securities Exchange (ADX), Aldar said Assad’s resignation was effective August 15 while adding details with regard to the appointment of a new company chief executive would be announced at a later date.
Aldar’s stock ended 2.55 per cent higher yesterday, closing at Dh2.82.
“(The resignation) seems to be part of Aldar’s ongoing restructuring process following its merger with Sorouh. Aldar is a strong institution and the CEO’s resignation wouldn’t impact the company’s current project pipeline. I believe, there will be an easy transition when the new CEO comes in,” said Marwan Shurrab, Director at Dubai-based investment firm Vision Investments.
Last week, Aldar said its fiscal second quarter net profit rose a whopping 200 per cent on year to Dh1.25 billion, while the net income for the first half this year rose to Dh1.41 billion, a rise of 57 per cent, year-on-year.
“The profit for the quarter was principally driven by the handover of land plots and residential units, steady growth from recurring revenue assets and a one-time gain on the acquisition of Sorouh’s assets offset by certain asset impairments,” Aldar said in a statement at the time, adding its total assets grew 36 per cent to Dh43.7 billion owing to its merger with Sorouh.
The merger between Aldar and the emirate’s second-largest property developer Sorouh Real Estate became effective at the close of trade on June 27.
Aldar Properties is now one of the largest listed real estate companies in the Middle East and North Africa region, with more than Dh46 billion of combined total assets as of March 31 and a market capitalisation of approximately Dh16.7 billion based on the closing share prices of both Sorouh and Aldar Properties at the end of trading on June 27.
The company is the owner of one of the largest land banks in the region (77 million square metres), 90 per cent of which is located in investment zones.
“Aldar is well-positioned to capitalise on the solid growth fundamentals of the Abu Dhabi economy. We will be handing over more than 7,400 units to customers over the next 12 months. This strong pipeline, supported by our steadily growing recurring revenues, leaves us well placed to generate sustainable returns for our shareholders,” commented Abu Bakr Seddiq Al Khoury. Aldar Properties’ chairman at the time of the announcement of second quarter results.
Aldar said its revenues of Dh1.26 billion during the second quarter were generated from the on-going handover of serviced land at Al Raha Beach East, the start of residential unit handovers at Tala Tower, revenues from national housing projects and recurring income from the investment properties portfolio.
Providing an update of its various projects, Aldar said the first phase of the 2,130-unit Alghadeer development in the eastern region of Abu Dhabi is now ready to be handed over to owners. At the Al Rayyana development, Aldar said tenants will be able to move into the development in the coming months. At World Trade Centre Abu Dhabi, managed by Aldar, final preparations are being made for the opening of The Mall by the end of this year.
As well, Aldar said the handover has started on 577 units in two towers on Al Reem Island. Tala Tower, the 375 apartment residential tower, was 70 per cent handed over to owners during the second quarter. “We also expect handover of a further 202 units in the tower adjacent to Tala Tower in Q3,” it added.
