Aldar and Emaar merger not on the table, says chairman
UAE property giants Aldar and Emaar do not have plans to merge, Mohamed Khalifa Al Mubarak, chairman of Aldar Properties said
UAE property giants Aldar and Emaar do not have plans to merge, Mohamed Khalifa Al Mubarak, chairman of Aldar Properties said.
The statement comes off the back of a joint venture (JV) announced last month worth $8.1bn (AED30bn) between the two companies.
The agreement was signed by Al Mubarak and Emaar chairman Mohamed Alabbar to initially build projects in Abu Dhabi and Dubai.
“We want to first cement this JV… We want to finish these developments, at the highest quality we can, at the timeframe we announced, and share it with the people, and then we can discuss what the future can hold for both these entities,” Al Mubarak said in a CNBC interview this morning, according to Arabian Business.
The property developers will initially collaborate on two UAE-based projects: Saadiyat Grove on Abu Dhabi’s Saadiyat Island, and the Emaar Beachfront project, located between Jumeirah Beach Residence and Palm Jumeirah.
“You eventually always outgrow your market. And as we've last seen, over the last several months with the announcement of the joint venture with Emaar - that is specifically focused on how we can bring in brand new clientele to Abu Dhabi,” Al Mubarak said of the strategy.
“At the same time, how we can expand to Dubai and other areas where Emaar are available… I think what you get with Emaar is a fantastic track record in developing unbelievable projects.”
The chairman also acknowledged that 2017 saw a “difficult real estate market around the world,” but said that the company’s gross profit was “about AED2.7bn”, or $735m, with recurring revenue of AED1.6bn ($436m) and off-market sales of AED2.5bn ($680m)
“Abu Dhabi is still quite early in bringing international investors in the realm of real estate,” he added.
“But, the opportunities are quite vast. Our real estate laws continue to get stronger. The locations that we have that Aldar has are really second to none.”
The JV between Aldar and Emaar will focus on the development of master-planned destinations, and is expected to spur similar co-investment opportunities between developers from both emirates.