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Revealed: Aldar Investments eyes growth with warehousing assets

Aldar's chief financial officer also opened up on Saudi opportunities in conversation with CW

Greg Fewer, Aldar's chief financial officer, said warehouse assets were one point of interest for Aldar Investments [image: Aldar HQ].
Greg Fewer, Aldar's chief financial officer, said warehouse assets were one point of interest for Aldar Investments [image: Aldar HQ].

Aldar Investments has identified logistical assets as a particular point of interest in terms of new acquisitions, the recently created investment arm of Abu Dbabi development heavyweight Aldar said.

“One of the great strengths is that [Aldar Investments] is the most diversified and scaled independent portfolio and company in the region,” Greg Fewer, chief financial officer at Aldar Properties, told Construction Week during the group’s Q3 financial results call.

“We love the fact that it’s got a diversified portfolio already, [but also] that there are other areas that we can continue to grow this business and company from,” he added. “One of them is logistics, and [another] is data centres.”

READ: Abu Dhabi's Aldar reports 11.4% decline in H1 2018 net profit

Aldar Properties created Aldar Investments in September 2018 after a recent decree gave Aldar full onshore real estate ownership rights.

Fully owned by Aldar, the new subsidiary features recurring revenue assets, including more than 5,000 residential units and 50ha of prime retail and commercial space.

The “evolution and digitisation of retail” was cited by Fewer as forming part of Aldar Investments' interest in warehouse assets looking ahead.

The executive also touched on the $8.1bn (AED30bn) Aldar-Emaar joint venture, which he described as “an immediate growth route into an attractive, and increasingly competitive, real estate market in our region”.

READ: Abu Dhabi's Aldar and Dubai's Emaar form $8bn property JV

He added: “In terms of growth you can’t ignore a market like Saudi [Arabia]. This is a market where there’s transformation change going on there. We’ve got strong networks in the Saudi market and obviously some very interesting opportunities coming out of that market.”

His comments came as Aldar Properties reported a 30% drop in third quarter net profits compared to the same period a year ago.

The group attributed this decline to increased debt used for the acquisition of Tourism Development and Investment Company (TDIC) assets, and increased interest costs because of a reduction in cash deposits.

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Construction Week - Issue 744
Jun 15, 2019