Louvre Aldar
The Louvre Abu Dhabi Residences is one of the Aldar releases in recent weeks. Aldar has been keeping the offplan pipeline busy right through the first quarter. Image Credit: Supplied

Dubai: More offplan launches and investment plays delivered Abu Dhabi’s Aldar properties another strong quarter, with revenues of Dh2.68 billion in the first three months of 2022, up 31.5 per cent. This translated into a net profit of a Dh688 million, from a substantial 26.5 per cent year-on-year increase.

Group-wide sales came to a record Dh2.2 billion, which included those from SODIC in Egypt. The latter, one of the bigger names in Egypt’s real estate space, was majority acquired by Aldar and ADQ. SODIC contributed Dh280 million to Aldar Development’s Q1-22 revenue.

Aldar, which has just announced its entry into logistics investments, also made a bold push into Ras Al Khaimah, first buying an existing mall and then a resort on Al Marjan island. But the core focus will remain on Abu Dhabi - "With demand for quality Abu Dhabi property remaining strong among investors and end-users, we will also ramp up development activity and new project launches, particularly on the expanded strategic land bank on Saadiyat Island," said Talal Al Dhiyebi, Group CEO.

On the development side, there will be increased focus on residential launches at Saadiyat Island, which along with Yas Island will be central to Aldar’s gameplan of creating ‘destination developments’. That’s according to Greg Fewer, the CFO.

Saudi move?
Saudi Arabia could represent the next big breakthrough for Aldar reaching out beyond the UAE. Aldar definitely can call in the funds to make things happen, typically using the acquisition route to do so.

The Abu Dhabi developer can call in Dh5.6 billion in free funds, which it plans to investment over the next 12-month duration. In addition, there is that $900 million it will be getting from Apollo Global Management, the global investment powerhouse.

If the Saudi move does pan out in this period, Aldar will be hoping for a repeat of numbers that its Egypt investment - the developer SODIC - returned in the first three months of 2022.

Aldar and ADQ account for 89 per cent in SODIC, which contributed Dh280 million during Q1-22. "SODIC has a good pipeline of deliveries, and we are happy with the way the first quarter turned out," said Greg Fewer, CFO. "I don't think raising the stake further in SODIC is a priority."

The same approach will be there for the Abu Dhabi Business Hub, in which Aldar has just taken out a 70 per cent stake. The 30 per cent remains with the original builder. According to Fewer, the status quo will remain because the "Business Hub's founder brings some great relationships and that complements what we bring to the project."

"We attracted a major investment from Apollo Global Management, which is driving the accelerated expansion and diversification of our investment property business. We also entered the high potential market of Ras Al Khaimah through two acquisitions in retail and hospitality, further increasing our geographic footprint, having entered the Egypt market at the end of last year."

Aldar's has Dh5.6 billion as dry powder that we can tap into for upcoming investments

- Greg Fewer of Aldar Properties