Aldar signs ADNIC as sub-developer of Al Raha

Aldar is to outsource parts of the Al Raha Beach development.

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Abu Dhabi National Insurance Company (ADNIC) is to be the first sub-developer in Aldar Properties’s Al Raha Beach complex.

The agreement is part of Aldar 's strategy to allocate portions of the Al Raha Beach land bank to third parties for work on the waterfront development, which includes a mix of residential communities as well as business, retail and leisure.

ADNIC will develop two plots in the Khor Al Raha precinct: a 16,465m² office building and an adjoining residences containing 198 apartments. The two sites are located near to Aldar's Al Zeina residential community and are due to be delivered in 2012.

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As part of the due diligence process, Aldar carried out a full review of ADNIC's plans to ensure that the development is fully integrated into the Al Raha Beach design and meets the criteria of the Urban Planning Council and Plan Abu Dhabi 2030. Aldar is responsible for the delivery of the infrastructure across Al Raha Beach, which will house 120,000 residents.

Sami Asad, Aldar Properties chief operating officer, said the project “is in line with the UPC guidelines will be truly complementary to the overall community”.

“We will continue to engage with selected third parties through our major master developments in Abu Dhabi to help meet the market demand."

Walid Sidani, ADNIC CEO, said: “We are confident of Aldar's commitment to deliver world class and quality infrastructure within their master projects."

He added, "This will also help ADNIC play a greater role in the development of Abu-Dhabi's pristine water front, which is in line with the leadership's 2030 vision."

Aldar Properties, the largest real estate developer and manager in Abu Dhabi, incurred a net loss of AED 314.2 million for the first quarter of this year compared with a net profit of AED888.6 million for the same period in 2009, way below analysts’ expectations. Poor sales performance has been attreributed with the loss.

Aldar shares lost 0.11% yesterday to close at AED2.96 and was the most traded company by value. It has lost 35% since the beginning of the second quarter.