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Aldar completes merger with Sorouh

on Jun 30, 2013




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RELATED ARTICLES:  Aldar, Sorouh merger to become effective 30 June l Arabtec, CCC JV wins $1.1bn Aldar Kazakh dealAldar reveals 26 March opening date for Yas Mall

The merger between Aldar Properties and Sorouh Real Estate became effective at the close of trade on Thursday, with shares in the new combined venture trading as Aldar Properties released onto the Abu Dhabi Securities Exchange today.

The company has announced that following the deal, it has successfully renegotiated terms on loans previously issued to Sorouh with an outstanding balance of $571.8m (AED: 2.1bn) where the interest margin has effectively been cut from 4.5% to 2.45%.

The merger creates a company with a market capitalisation of around $4.5bn (AED: 16.7bn) and combined total assets of $12.5bn (as of the most recent valuation on March 31). It also has a land bank of 77 million m2 - 90% of which is in industrial zone.

The company said the Abu Dhabi government, which owns a stake of around 37% in the merged venture, would be a key customer as it helped to deliver new housing projects.

New chairman HE Abubaker Seddiq Al Khouri said: “It gives me great pleasure to announce that today marks the first day of business as a combined company. Operating under the name Aldar Properties, the business is one of the biggest real estate developers in the region.

"The company benefits from a strong balance sheet, a large asset base, a prime land bank for development and an experienced management team.

"These strengths, combined with our continued close partnership with the Abu Dhabi Government, will allow us to flourish commercially in an economy that is sustainable. I believe that all these strong and exciting fundamentals will deliver significant value to all our stakeholders for years to come.”

 



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