Following completion of a $400mn transaction, Apollo, through its managed investment vehicles, has acquired an 11.1% minority stake in Aldar Investment Properties (AIP). The subsidiary of Abu Dhabi-listed Aldar Properties is the region’s largest institutional-class real estate platform.
The transaction involved the issuance of $400mn in common equity and mandatory convertible preferred equity at 100% of NAV into AIP, which houses Aldar’s core asset management business; this comprises more than $6.3bn of prime real estate assets across retail, residential, commercial, and logistics segments. The diversified portfolio is said to have been highly resilient through a number of challenging economic cycles, with occupancy standing at 92% as of June 30, 2022.
By providing significant financial backing, the transaction is a catalyst for AIP to significantly scale up its real estate platform through further transformative acquisitions, a statement from Aldar said.
AIP has been expanding rapidly this year and in July announced the acquisition of four prime Grade A commercial towers in Abu Dhabi Global Market, Abu Dhabi’s financial centre, for $1.7bn.
Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, commented: “We welcome Apollo as strategic investors in Aldar Investment Properties at a time when we are building significant scale, diversification, and synergies across the region’s premium platform for property ownership. Apollo is a highly respected global investor, and this commitment displays strong belief in Aldar’s transformational growth agenda and reinforces the reputation of the UAE and Abu Dhabi, which is experiencing a trend of increasing capital inflows from long-term institutional investors.”
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