New York-based global alternative investment management firm, Apollo Global Management, commits $1.4 billion in Abu Dhabi’s leading developer, Aldar Properties.
It includes a $500 million investment in land joint venture where the land acquired could later be developed or sold, and a $100 million common equity investment which will secure Apollo a minority stake in the real estate investment unit of Aldar. The said commitment will be made by Apollo managed funds and clients.
In addition, Apollo will invest $800 million in Aldar Investment Properties through ‘perpetual subordinated notes’ and ‘mandatory convertible preferred equity’.
“Aldar’s ability to attract a long-term partner such as Apollo, underscores the strength of Aldar’s business franchise,” Aldar Chief Executive Talal Al Dhiyebi said.
Jassem Busaibe, CEO at Aldar Investment stated, “Diversifying our investor base and establishing partnerships is a key tenet of our growth strategy and essential in enabling us to build scale, enhance asset diversification, and drive earnings growth.”
Likewise, Apollo Chief Executive Marc Rowan expressed his delight to serve as a long-term capital partner to Aldar. This joint venture is predicted to boost foreign investor interest in the UAE.
The transaction between the two firms is expected to conclude by the end of the first quarter of 2022 where the cash proceeds will be used to fuel Aldar’s growth plans. Recently, Aldar had expressed its intention to spend $1.4 billion of its current capital in acquiring further revenue generating assets like commercial and residential properties.
In 2020, Apollo entered partnership with Mubadala Investment Company and a long-term joint venture with ADNOC which Apollo funds and clients resulted a $2.7 billion investment in a real estate venture.
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