Abu Dhabi’s Aldar Properties’ nine-month sales of Dh9.3b already on Dh2b for full-year 2021 | Job Binary

Dubai: There’s no stopping Aldar Properties, having just delivered its ninth consecutive quarter of “record sales”. In the year to September, the Abu Dhabi master developer has total sales of Dh9.3bn – and is on track for Dh2bn for the whole of 2021.

This meant that Aldar’s nine-month net profit was Dh2.13 billion, up 38 per cent from the same period last year. It was cut from revenue of Dh8.07 billion, up 28 percent from a year earlier.

The group’s development base by the end of September is Dh14.5 billion, while its turnover is Dh9.06 billion, which is 55 percent more than a year ago. (In the third quarter alone, revenue was Dh2.71 billion, resulting in a profit of Dh601 million.)

Aldaria has clearly been served by highly visible launches on Yas and Saadiyat Islands. In addition, built assets have been acquired in Abu Dhabi and Ras Al Khaimah. In addition, there is the SODIC acquisition, which was made in Egypt together with ADQ. Now SODIC has made its intention to buy another Egyptian developer, Orascom Real Estate. So far, SODIC has added 924 million DH in turnover and 199 million DH in EBITDA to Aldar’s figures. (Aldar-ADQ owns just over 85 percent of SODIC.)

Cash to buy – Dh5b for it

Expect a lot more of that as Aldar confirmed Dh5 billion in excess capital “allocated to fund equity investments for acquisitions over the next 9-12 months”. (Aldar has suggested a potential interest in GEMS, a Dubai-based school operator, which could be up for sale.)

A strong decision for 2022

“With the busy Q4-22 calendar of events and the tourism season underway, Aldar sees a strong and vibrant real estate market and positive sentiment continuing well into 2023 as Abu Dhabi continues to be a leading investment destination and a world-renowned place to live, work and visit,” according to the developer.

“Having demonstrated strength and agility across economic cycles, Aldar continues to accelerate its sustainable growth in the emerging UAE market while creating long-term value for its shareholders,” said Talal Al Dhiyebi, CEO. “Therefore, we intend to maintain our investment activities in the region supported by our strong liquidity position and driven by our transformative growth strategy.

“We will also continue to activate our extensive land bank to maintain the high level of our development sales, in line with the growth of overseas sales to international and foreign buyers as Abu Dhabi’s position as a global investment destination matures.”

Aldar is looking for more purchases

Aldar isn’t losing its appetite for new deals – if anything, the Abu Dhabi developer is eyeing more. And myself in the coming weeks.

The company plans to complete “credible acquisitions” this quarter or early 2023. And it has the ammunition — $5 billion — to make things happen. One such could be the Egyptian developer Orascom, for which SODIC, owned by Aldar-ADQ, is conducting a due diligence study.

Aldar’s head of finance and sustainability, Greg Fewer, stated whether the potential deal also extends to Dubai school operator GEMS: “We will update as soon as there is something to report. We are not going to comment on speculative reports.

“Our managed education business has grown from 8,000 students to 33,000 through our own schools, the schools we’ve bought, and it’s still an incredibly valuable business. We will continue to invest in this.”

About the Orascom opportunity, Fewer said the following: “Egypt’s growth is long. Even with SODIC, there is more than enough room to grow on that side of Cairo (if the Orascom deal goes through). We would get more synergy benefits.”

Aldar has already made a few eye-catching deals this year, notably Dh3 billion and one of four office towers in the Abu Dhabi Global Market. Resort purchases were also made in Ras Al Khaimah and Nurai Island in Abu Dhabi. Adaar has also raised $1.4 billion from a deal with global asset management firm Apollo.

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