Abu Dhabi's Aldar Properties Transfers, Sells USD $4.5 Billion of Real Estate Assets Back to Government

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Abu Dhabi-based Aldar Properties PJSC announced today the unit sales, asset transfers and reimbursements with the Government of Abu Dhabi, for a total consideration of AED 16.8 billion (USD $4.5 billion).

The transaction consisted of the following:

• Residential Units at Al Raha Beach - The Government of Abu Dhabi has purchased 760 three, four and five bedroom units within the Al Bandar, Al Zeina and Al Muneera developments in Al Raha Beach for a total consideration of AED 3.5 billion. Aldar retains ownership of the remaining inventory of units at Al Raha Beach, which are available for purchase or "rent-to-own".

• Al Raha Beach Infrastructure - In line with previous agreements with the Government of Abu Dhabi in relation to Yas Island, the Government of Abu Dhabi has agreed to reimburse Aldar AED 5 billion towards certain existing and to be completed infrastructure assets at Al Raha Beach. This amount will be settled by the immediate retirement of AED 5 billion towards the currently outstanding infrastructure loan from the Government of Abu Dhabi. These infrastructure assets will be transferred to the relevant government authorities as and when directed by the Government of Abu Dhabi.

• Central Market - The Government of Abu Dhabi tasked Aldar with the redevelopment of part of Abu Dhabi's city centre in 2005, known as Central Market. In line with previous transactions relating to strategic assets, existing assets of Central Market and its associated infrastructure have been sold to the Government of Abu Dhabi for AED 5.7 billion. Aldar will be responsible for the construction management and supervision of the completion of the project as well as the immediate day-to-day operation and management of the facilities and tenant relations on behalf of the Government of Abu Dhabi. The estimated completion costs of AED 2.6 billion will be funded by the Government of Abu Dhabi.

The proceeds from the sale transactions will be received over the next four years pursuant to an agreed payment schedule which includes the receipt of AED 4.5 billion in the next two months.

Ali Eid AlMheiri Chairman of Aldar Properties tells World Property Channel, "Following the financial framework announcement in January of this year, the Board undertook a comprehensive review of Aldar's business model, finances and operations. As part of this process, we continued negotiations with the Government of Abu Dhabi, which led to the transactions we are announcing today, that are designed to create the solid financial foundation needed to drive returns to shareholders. Moreover, we have realigned our organizational structure, reduced headcount and refined our business strategy."

AlMheiri continues, "Chairman With a substantial land bank across Abu Dhabi, Aldar is well placed to capitalize on future development opportunities based on demonstrable market demand. Aldar will also benefit from sustainable recurring revenues from our office, retail, hotel and education assets, as well as development management fees from large scale third party projects."