Alpha Dhabi raises Aldar stake to 29.8% as it expands property portfolio

The Abu Dhabi-listed company buys an additional 17% to become one of the biggest shareholders in the developer

Alpha Dhabi Holding acquired Sublime 2, Sogno 2 and Sogno 3, which together controlled 17 per cent of Aldar. Sammy Dallal / The National

Alpha Dhabi Holding, a subsidiary of Abu Dhabi-listed conglomerate International Holding Company, has bought an additional 17 per cent stake in Aldar Properties as it continues to expand its property investment portfolio.

The acquisition brings Alpha Dhabi’s overall stake in Abu Dhabi’s biggest developer to 29.8 per cent, it said in a statement on Monday to Abu Dhabi Securities Exchange, where its shares are traded.

Alpha Dhabi Holding completed the deal through the acquisition of Sublime 2, Sogno 2 and Sogno 3, which together controlled 17 per cent of Aldar, making it one of the biggest shareholders in the company. It did not disclose the purchase prices.

Aldar's shares ended the trading day at Dh3.99 on December 30 after having climbed 0.75 per cent to Dh4.02 at 11am.

"Aldar’s rapid growth, strategic expansion plan and project pipeline represent the right investment for ADH and our shareholders,” said Hamad Al Ameri, managing director and chief executive of Alpha Dhabi.

“Aldar's many projects vary between local, regional and international markets and align with our vision for ADH to explore new markets.”

In April, Alpha Dhabi bought a 12.8 per cent stake in Aldar Properties from Mubadala Investment Company for Dh3.5 billion ($953 million). The company made the acquisition through its subsidiary, Sublime Commercial Investment, Mubadala said at the time.

Mubadala remain a long-term strategic investor with a 25 per cent stake. The transaction was carried out through the transfer of about 1 billion shares in a block trade, which was one of the largest private share purchases in a UAE-listed company.

The move to boost its stake in Aldar is in line with Alpha Dhabi's expansion plan and future strategy. The company seeks to invest Dh8bn in property, hospitality, health care and petrochemicals and other promising sectors within and outside the UAE.

“The real estate sector has been witnessing an outstanding recovery during 2021; demand for residential, commercial, hospitality and logistics units continues to grow as a result of the resilience and agility of the country’s post-pandemic strategy,” Mr Al Ameri said on Monday.

The UAE property market, which softened due to a three-year oil price slump that began in 2014 over supply concerns and the Covid-19 pandemic, has made a strong recovery as people upgrade to larger homes with outdoor amenities amid a surge in remote working and online learning.

Economic support measures and government initiatives – such as residency permits for those who have retired and remote workers, in addition to the expansion of the 10-year golden visa programme – have also helped to improve sentiment.

Aldar is a master developer of integrated communities in areas including Yas Island, Saadiyat Island, Al Raha, and Reem Island.

The company last year overhauled its business model and now has a group operating structure managing its core development and investment businesses. Its fourth-quarter net profit rose 28 per cent to Dh729m while revenue grew 19 per cent to Dh2.53bn.

The Abu Dhabi property developer is also expanding regionally. Last month, Abu Dhabi holding company ADQ and Aldar said it was acquiring 85.52 per cent of Egyptian developer Sixth of October Development and Investment Company for 6.1 billion Egyptian pounds ($386.8m) after a successful mandatory tender offer.

The Abu Dhabi-based consortium, of which Aldar controls 70 per cent and ADQ 30 per cent, plans to strengthen Sodic’s position as a leading national developer and growing its portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets.

Alpha Dhabi, which has a market value of Dh273bn and was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions in 2021.

It fully acquired Murban, a company with investments in the hospitality, facility management services and oil and gas services sectors. It also bought a 70 per cent stake in Mawarid Holding Investment, which is engaged in Sharia-compliant financing and investing activities through Aafaq Islamic Finance.

Its latest acquisition of Sublime 2, Sogno 2 and Sogno 3 also gives it an additional 3.38 per cent share in National Marine Dredging Company on top of its 65.11 per cent stake. The deal also gives it 25.24 per cent stake in Al Qudra Holding, it said in a separate bourse filing.