Abu Dhabi-based property development company, Aldar Properties has acquired Al Hamra Mall in Ras Al Khaimah in a $111 million (Dh410 million) deal.
According to the statement, the transaction is Aldar’s first investment and intends to expand its footprint in Ras Al Khaimah.
Aldar’s acquisition of the 27,000-square-metre mall developed by Al Hamra Group adds further scale and diversification to Aldar Investment, which manages more than 45.9 billion (Dh22 billion) worth of income-generating residential, retail, commercial, hospitality, and education assets.
Aldar Investment intends to invest in reconfiguring the mall, broadening its products, introducing additional high-quality brands, and improving the customer experience to increase sales and footfall growth.
Talal Al Dhiyebi Group CEO Aldar Properties
“Ras Al Khaimah represents an attractive opportunity for Aldar, due to the Emirate’s demographics, strong market dynamics, and tourism sector fundamentals. It has emerged from the pandemic as a key investment destination within the UAE and we look forward to growing our presence over time. Through the Aldar Investment platform, we are assessing opportunities to deploy further capital into new geographies and property types as part of an overarching growth strategy. This initial transaction is very much in line with our plans to leverage Aldar Investment’s strengths to grow, diversify further, and create significant value for our shareholders.”
As part of the agreement, Aldar has also secured development rights for an extra 11,200 sqm of gross floor area (GFA), with an option to acquire an additional 7,400 sqm for retail and commercial use.
Mr. Jassem Busaibe, Chief Executive Officer at Aldar Investment said that, “As the UAE retail sector continues its robust recovery from the global pandemic, the acquisition of Al Hamra Mall provides Aldar Investment with a significant transformation opportunity in a key development zone in Ras Al Khaimah.”
“Our business has proven remarkably resilient in the challenging environment of the last two years, continuing to deliver steady recurring income. We are therefore in a strong position to expand through acquisitions such as this and deploy our world-class asset management capabilities to deliver significant upside in terms of valuation and income,” Mr. Busaibe added.
