Abu Dhabi heavyweights Aldar and ADQ get go-ahead to acquire Egypt developer SODIC for $386m
For Aldar, entry into Egypt represents a key step in widening its portfolio
Dubai: As was widely expected, the Abu Dhabi combine of Aldar Properties and ADQ has completed the majority stake purchase in one of Egypt’s leading developers SODIC. For Aldar, this represents its first step outside of its home market of Abu Dhabi in recent years.
SODIC is a developer of upscale residential communities and mixed-use projects in Egypt. The listed company also has a solid land bank for future project. Aldar-ADQ will own 85.52 per cent in the company – otherwise known as The Sixth of October for Development and Investment. It was earlier this year that Aldar, one of the biggest real estate names in the UAE, spoke about its interest in Egypt.
Earlier this week, Abu Dhabi's Chimera confirmed a $100 million investment in Egypt through an association with billionaire-developer Naguib Sawaris.
Right fit for expansion
Talal Al Dhiyebi, Group CEO of Aldar, said: “Aldar has identified Egypt as a priority market for international expansion, driven by a strong belief in the country’s potential and the macro-economic fundamentals driving the real estate sector.
“After studying the market, SODIC emerged as our desired entry-partner and is a natural commercial fit for Aldar. The transaction is a testament to both Aldar and ADQ’s belief in the company’s track record, governance framework and business model and we look forward to supporting SODIC create even greater economic and social value for its stakeholders.”
The Abu Dhabi based consortium – with Aldar holding 70 per cent - has a broad portfolio of major enterprises in key sectors of Abu Dhabi’s economy. ADQ has in last 12-18 months emerged as one of the most influential holding companies in the UAE.