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Abu Dhabi's Aldar draws $816m investment plans

The transaction underscores Aldar’s ambition to grow its recurring revenue portfolio through investment in new and existing revenue producing assets

Aldar has acquired Daman House, a commercial office building in Capital Centre Abu Dhabi.
Aldar has acquired Daman House, a commercial office building in Capital Centre Abu Dhabi.

Abu Dhabi developer Aldar Properties has put in $245m (AED900m) as a part of its $816m (AED3bn) investment plan by acquiring a commercial property in Abu Dhabi.

The listed company  has acquired Daman House, a commercial office building in Capital Centre Abu Dhabi.

Daman House comprises 23,000 sqm gross leasable area (GLA) of Grade A commercial space, fully leased on a long-term contract to a single government related entity.

The transaction underscores Aldar’s ambition to grow its recurring revenue portfolio through investment in new and existing revenue producing assets.

The purchase of Daman House is the first to be made as part of its investment programme that Aldar is implementing to drive growth within its recurring revenue business to achieve its new target of $598m (AED2.2bn) net operating income (NOI) by 2020.

The company has already committed approximately $245m (AED900m) of investment, representing almost 30% of this programme, through the Daman House transaction, the forthcoming extension of Al Jimi Mall in Al Ain and the expansion within Aldar Acadamies through the construction of the Al Mamoura School in Abu Dhabi, announced in November 2015.

The $111m (AED410m) extension of Al Jimi Mall will bring an additional 33,000 sqm GLA of retail space to the existing 43,000 sqm GLA trading space as well as a renovation and face lift of the existing mall, ground breaking of which is expected to take place in January 2016.

The Al Mamoura school will be a co-educational primary school and a girls only secondary school. A total of $43.5m (AED160m) will be spent on its construction, which is expected to be completed in 2016.

Mohamed Al Mubarak, CEO at Aldar Properties, commented: “The acquisition we are announcing today fits perfectly with our strategy of increasing our recurring revenue base and demonstrates our ability to take advantage of value accretive opportunities when they arise. The acquisition underscores our ability to successfully execute against our strategy to grow recurring revenues. I firmly believe that our sound financial position, strong capital structure and proven asset management capabilities will allow us meet our NOI target by 2020.”

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