Aldar secures $1b Apollo deal to expand income assets and strengthen finances
Deal lifts Aldar stake in income assets to 90% while strengthening balance sheet
Dubai: Abu Dhabi developer Aldar has secured fresh long-term capital from global asset manager Apollo in a move that strengthens its balance sheet while increasing exposure to recurring income from investment properties.
The company issued $1 billion in subordinated hybrid notes through a private placement to Apollo-managed funds, marking one of the region’s largest corporate hybrid transactions and deepening a partnership that has steadily expanded since 2022.
Net proceeds will be injected into Aldar Investment Properties, the platform that holds the group’s income-generating real estate assets, while part of the funding will be used to repay $500 million in perpetual hybrid notes issued earlier to Apollo.
Bigger share of stable income
Following the transaction, Aldar’s ownership in Aldar Investment Properties rises to 90%, increasing its exposure to recurring rental income streams that form a core pillar of the company’s long-term growth strategy.
The investment platform continues to expand through acquisitions and a sizeable develop-to-hold pipeline valued at nearly $5 billion, which is expected to drive steady earnings growth in the coming years.
“This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar’s strategy, financial management and growth trajectory," said Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar. "The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalize on attractive opportunities across our core markets.”
He added that the transaction will strengthen the company’s income base.
“Importantly, it elevates Aldar’s share of stable, recurring income generated by AIP’s high quality, diversified portfolio, which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to $5 billion.”
Partnership momentum continues
The latest deal brings Apollo’s total investment in Aldar to about $2.9 billion since the firms began working together four years ago, reflecting sustained institutional appetite for the developer’s income-focused assets.
“Completing our fifth investment with Aldar speaks directly to Apollo’s ability to structure flexible capital solutions that are responsive to the needs of both our corporate clients and our investors," said Jamshid Ehsani, Partner at Apollo. "Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team.”
He added that the investment also signals continued commitment to the region.
“This latest investment reflects Apollo’s continued commitment to Abu Dhabi and the broader region.”
Balance sheet strength maintained
The hybrid notes carry a longer non-call period of more than ten years and mirror the structure of Aldar’s recent public hybrid issuance, which received investment-grade ratings from Moody’s earlier this year.
The latest capital injection is expected to support Aldar’s expansion plans while maintaining financial flexibility, strengthening the developer’s position in a market where recurring income assets are increasingly seen as a stabilising force amid cyclical property demand.
