- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 03:59 05:25 12:21 15:42 19:12 20:38
The Government of Abu Dhabi has agreed to purchase several of Aldar's assets which have broad value for Abu Dhabi's economy. Furthermore, in a coordinated action, Mubadala Development Company has agreed to purchase a convertible bond of Aldar.
The government acted because it believes that the asset purchase, in conjunction with Aldar's recognition of impairment and the convertible bond being placed with Mubadala, are measures that will help strengthen the company's capital structure, thereby allowing Aldar to achieve its objectives, including its participation in building the economy of Abu Dhabi. Chief among these benefits, Aldar will be able to continue to focus on its construction projects that are currently underway.
This purchase is consistent with past practice whereby the government has paid private companies for the construction of projects that are important for the development of Abu Dhabi's economy. This purchase does not signal a change of government policy towards Aldar, nor towards any other commercial enterprise. Government policy remains that broad and ongoing support will be offered exclusively to Mubadala, IPIC, TDIC, and Taqa.
Meanwhile, Aldar Properties PJSC, unveiled a series of steps designed to solidify the company's position for long-term, sustainable growth.
The measures are focused on addressing current market conditions and on boosting the company's capital structure.
These include the: Recognition of an approximately Dh10.5 billion ($2.86 billion) impairment charge relating to the value of assets; Reimbursement and sales totalling Dh10.9 billion ($2.97 billion) for the transfer of certain infrastructure assets on Yas Island including the recently opened Ferrari World Abu Dhabi theme park, roads, bridges, marine infrastructure, and land.
This deal is consistent with an element of Aldar's business model under which the company has supported the long-term objectives of the Emirate of Abu Dhabi by building and developing strategic assets and transferring them to the Government upon completion; Placement of a convertible bond worth Dh2.8 billion ($760 million) with Mubadala Development Company.
The issuance of the bond is subject to shareholder approval at an upcoming Extraordinary General Meeting; and, Sale of residential units and land for Dh5.5 billion ($1.49 billion) to the Government of Abu Dhabi.
"The financial framework approved by the Board today, including the convertible bond issue, will strengthen our capital structure and provide us with a stable and sustainable platform from which we can continue to capture commercial opportunities to deliver value to shareholders." said Ahmed Al Sayegh, Chairman of Aldar.
"The impairment recognition reflects the adverse conditions that have affected the real estate market, but is an important step in allowing Aldar to achieve long-term sustainable growth." Moving forward, Aldar will build on the experience gained as a strategic developer for Abu Dhabi and focus on the creation, ownership and operation of quality residential, commercial, retail, leisure and hospitality, and educational establishments. It will continue to adopt a measured approach to development, adapting to prevailing market conditions.
Aldar's diverse portfolio includes commercial developments such as Central Market, Al Raha Beach, Yas Island (including Yas Mall and Yas Hotel), HQ, and Al Bateen Park, and government projects such as the Al Falah Emirati housing project. In addition, the company continues to deliver major infrastructure works, as well as significant projects on behalf of Abu Dhabi companies such as Mubadala.
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