The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
GENEVA / WAM
Aldar Investments Properties has announced it’s acquiring full ownership of Etihad Plaza and Etihad Airways Centre in an AED1.2 billion transaction with Etihad Airways.
As part of the deal, Etihad will take 100 percent ownership of Etihad Airways HQ. The three properties were previously held in three 50/50 joint ventures between Aldar Properties and Etihad (the JV).
The transaction is expected to complete in Q2 2019.
This is the first major transaction for Aldar Investments which launched in September 2018. Aldar Investments is a wholly-owned subsidiary of Aldar and, upon its creation, became the region’s largest diversified real estate investment company.
On completion, AED1.2 billion of investment properties and other assets will be acquired by Aldar Investments in exchange for transfer of full ownership of Etihad HQ to Etihad. As part of the transaction, Aldar will assume existing debt within the Etihad Plaza and Etihad Airways Centre JVs, which will be kept in line with Aldar Investment’s established debt policy to hold 35-40 percent loan to value.
The deal adds 789 residential units, 17,940 sqm Net Leasable Area (NLA) of office space and 11,000 sqm NLA of retail space to Aldar Investments’ existing high-quality portfolio. Full ownership of these assets will enable AldarInvestments to recognise annualised annual net operating income of AED0.1 billion, previously reported as a share of profits from the JV. Aldar Investments will also continue to benefit from a strong tenant base with long leases that provide solid visibility of income.