Aldar Properties and Apollo Global Management (Apollo) have signed a pact under which Apollo-managed funds and clients will invest a total of $1.4 billion in strategic capital in driving Aldar’s transformational growth initiatives.
A total of $500 million would be invested into a land joint venture, $500 million are meant as perpetual Subordinated Notes issued by Aldar Investment Properties, $300 million as a Mandatory Convertible Preferred Equity investment in Aldar Investment Properties and $100 million as Common Equity investment in Aldar Investment Properties.
Aldar said the land joint venture will allow it to realize long-term value tied up in its vast landbank while maintaining flexibility to develop or sell the land per Aldar’s long-term development strategy.
As part of the deal, Apollo will take a direct minority stake in Aldar Investment Properties at its Net Asset Value, highlighting the underlying strength of its asset base and Apollo’s conviction in the company’s growth strategy, management capabilities, and ability to capitalize on accretive opportunities that lie ahead.
Commenting on the transaction, Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, said, “This landmark transaction is a signal to the world’s investment community that Abu Dhabi’s real estate market is on a growth trajectory, supported by significant economic and social reforms, and a world-leading response to COVID-19.”
Apollo Chief Executive Officer, Marc Rowan, said, “Apollo is pleased to serve as a long-term capital partner to Aldar and to continue expanding our strategic investments and partnerships in Abu Dhabi, and across the United Arab Emirates. Leveraging our global integrated investment platform and permanent capital base, we were able to structure a capital solution to support Aldar’s transformational growth agenda while allowing our investors to access highly attractive, long-dated yield.”
In 2020, Aldar entered into a strategic partnership with Mubadala Investment Company and a long-term joint venture with ADNOC in which Apollo funds and clients led a $2.7 billion investment in a real estate joint venture.