Abu Dhabi-based Aldar has acquired the Al Hamra Mall in Ras Al Khaimah for Dh410 million, it announced on Tuesday, marking its first investment in the emirate.
As part of the agreement, Aldar has also secured development rights for an extra 11,200 sqm of gross floor area, with an option to acquire an additional 7,400 sqm for retail and commercial use.
Completed in 2009, the 27,000 sqm mall has been developed by Al Hamra, a Ras Al Khaimah-based real estate development and investment company.
The transaction adds further scale and diversification to Aldar Investment, which manages more than Dh22 billion of income-generating residential, retail, commercial, hospitality and education assets.
Aldar Investment plans to invest to reconfigure the mall, broaden its offerings, introduce more high-quality brands, and enhance the customer experience to drive sales and footfall growth.
Commenting on the transaction, Aldar group CEO Talal Al Dhiyebi said: “Ras Al Khaimah represents an attractive opportunity for Aldar, due to the emirate’s demographics, strong market dynamics, and tourism sector fundamentals. It has emerged from the pandemic as a key investment destination within the UAE and we look forward to growing our presence over time. Through the Aldar Investment platform, we are assessing opportunities to deploy further capital into new geographies and property types as part of an overarching growth strategy. This initial transaction is very much in line with our plans to leverage Aldar Investment’s strengths to grow, diversify further, and create significant value for our shareholders.”
Jassem Busaibe, CEO at Aldar Investment, added: “As the UAE retail sector continues its robust recovery from the global pandemic, the acquisition of Al Hamra Mall provides Aldar Investment with a significant transformation opportunity in a key development zone in Ras Al Khaimah. Our business has proven remarkably resilient in the challenging environment of the last two years, continuing to deliver steady recurring income. We are therefore in a strong position to expand through acquisitions such as this and deploy our world-class asset management capabilities to deliver significant upside in terms of valuation and income.”
“Al Hamra Mall is one of the flagship retail and leisure destinations in Ras Al Khaimah and the Northern Emirates. We created a high-value asset which is now being further enhanced by Aldar through its strategic investment. This reflects the tremendous potential of Ras Al Khaimah as a retail and tourist hub that can attract significant inward investments,” said Benoy Kurien, CEO of Al Hamra Group.