Aldar Properties, Abu Dhabi-listed company, has acquired Daman House, a commercial office building, in Capital Centre Abu Dhabi under its Dh3 billion investment plan.
The tower comprises 23,000 square metres gross leasable area (GLA) of Grade A commercial space, fully leased on a long-term contract to a single government related entity.
The purchase is the first to be made as part of a Dh3 billion investment programme that the developer is implementing to drive growth within its recurring revenue business to achieve its new target of Dh2.2 billion net operating income (NOI) by 2020.
The company has already committed approximately Dh900 million of investment, representing almost 30 per cent of this programme, through the Daman House transaction, the extension of Al Jimi Mall in Al Ain and the expansion within Aldar Acadamies through the construction of the Al Mamoura School in Abu Dhabi, announced in November 2015.
The Dh410 million extension of Al Jimi Mall will bring an additional 33,000 sqm GLA of retail space to the existing 43,000 sqm GLA trading space as well as a renovation and face lift of the existing mall.
The mall has a footfall of 8 million visitors a year. Ground breaking of the new extension is expected to take place this month.
The Al Mamoura school will be a co-educational primary school and a girls only secondary school. A total of Dh160 million will be spent on its construction, which is expected to be completed in 2016.
The investment into these three assets, all of which is being funded out of existing cash resources, will contribute approximately Dh90 million dirhams NOI once the assets are fully stabilised, with Daman House making an immediate contribution to NOI growth.
Mohamed Al Mubarak, Chief Executive Officer at Aldar Properties, said: “The acquisition we are announcing today fits perfectly with our strategy of increasing our recurring revenue base and demonstrates our ability to take advantage of value accretive opportunities when they arise.
The acquisition underscores our ability to successfully execute against our strategy to grow recurring revenues. I firmly believe that our sound financial position, strong capital structure and proven asset management capabilities will allow us meet our NOI target of Dh2.2 billion dirhams in NOI by 2020.”