Abu Dhabi-listed developer Aldar Properties has formed a subsidiary company that will own and operate AED20bn ($5.4bn) of real estate assets.
The subsidiary, known as Aldar Investment Properties or Aldar Investments, has been assigned a Baa1 rating by Moody’s – the highest rating for a non-government corporate in the region.
The rating is one notch above Aldar Properties and means Aldar Investments can access capital on more favourable terms.
The company says it intends to issue a new sukuk in the near term. Aldar Investments has also set formal debt and dividend policies consistent with the current asset management business, providing further clarity for investors.
The recurring revenue assets that Aldar investments owns include over 5,000 residential units and over 500,000 square metres of prime retail and commercial space. These include properties such as Yas Mall, Aldar HQ and The Gate Towers & Arc, and over 2,400 hotel keys, predominantly on Yas Island.
The formation of the subsidiary follows the recent Abu Dhabi Executive Council Decree that extends full onshore real estate ownership rights to Aldar Properties and its subsidiaries in Abu Dhabi.
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