Apollo Global Management, one of the world’s largest alternative investment managers, has acquired an 11.1 percent stake in Aldar Investment Properties (AIP), a subsidiary of Abu Dhabi’s biggest listed developer Aldar Properties, for $400 million.
The company said that the acquisition is part of the previously announced $1.4 billion investment by Apollo into Aldar’s transformational growth initiatives.
According to the statement, “The transaction involved the issuance of $400 million of common equity and mandatory convertible preferred equity at 100 percent of NAV into AIP, which houses Aldar’s core asset management business comprising over $6.3 billion (AED 23 billion) of prime real estate assets across retail, residential, commercial, and logistics segments.”
Furthermore, the transaction serves as a catalyst for AIP to significantly scale up its real estate platform through more transformative acquisitions by offering substantial financial backing, the company added.
Talal Al Dhiyebi CEO – Aldar
“We welcome Apollo as strategic investors in Aldar Investment Properties at a time when we are building significant scale, diversification, and synergies across the region’s premium platform for property ownership. Apollo is a highly respected global investor, and this commitment displays strong belief in Aldar’s transformational growth agenda and reinforces the reputation of the UAE and Abu Dhabi, which is experiencing a trend of increasing capital inflows from long-term institutional investors.”
Apollo Co-President Mr. Scott Kleinman noted that this transaction provides Apollo with exposure to prime institutional real estate in the UAE through a high-quality platform.
“We are excited by Aldar’s strategy for continued growth, the team’s strong asset management credentials, and the prospects for significant value creation. Apollo has confidence in the UAE’s increasingly dynamic investment landscape and the robust economic fundamentals that underpin it,” Mr. Kleinman added.
