Aldar says its subsidiaries can own real estate under a government decree
Subsidiaries of Abu Dhabi developer Aldar Properties are allowed to own real estate in the emirate under a government decree.
The Abu Dhabi Exchange-listed company said in a bourse statement that Sheikh Mohamed Bin Zayed, Crown Prince and Deputy Supreme Commander of the Armed Forces, had issued the decree on Monday.
“The decree states that effective July 25, 2018, a subsidiary company which is more than 50 per cent owned directly or indirectly by Aldar Properties may own real estate in Abu Dhabi,” the statement read.
It did not specify to which subsidiaries the decree would apply and Aldar declined to provide further information. The developer is expected to unveil more details at an event at the financial free zone Abu Dhabi Global Market on Wednesday.
The Abu Dhabi state-backed developer entered into a joint venture partnership with Dubai’s Emaar Properties in April to develop around Dh30 billion of real estate projects in the UAE and overseas.
The two companies said they will initially work together on the Saadiyat Grove project on Saadiyat Island in the capital and Emaar’s Beachfront island development in Dubai.
Aldar posted a 10 per cent year-on-year increase in sales revenue to Dh1.5bn for the second quarter of 2018, but a 28 per cent drop in net profit to Dh445m due to a one-off loss on revaluation of investment properties, it said in August.
On Monday, sources said Aldar hired JPMorgan, Standard Chartered and First Abu Dhabi Bank to arrange a US dollar-denominated sukuk issue of at least $750m.