Aldar Investment will acquire three properties owned jointly by Aldar Properties and Etihad Airways in a deal worth $326.7m.
The three properties – Etihad Plaza, Etihad Airways Centre, and Etihad Airways HQ – were previously held in 50:50 joint venture between the two companies.
As part of the deal, Aldar Investment will acquire 789 residential units as well as approximately 1,600m² of net leasable office space and 1,000m² of retail space.
“The transaction will also see Aldar Investments assume existing debt within the Etihad Plaza and Etihad Airways Centre JVs, which will be kept in line with its established debt policy to hold 35-40% loan to value.” Arabian Business reported.
Etihad Plaza is a mid-rise residential development that provides housing to Etihad staff in apartments ranging from one- to four-bedrooms. It will be fully leased to Etihad Investment on a long-term deal until 2034.
Meanwhile, Etihad Airways Centre is located in Aldar’s Al Raha Beach development, and the office space will be leased to Etihad in a deal that expires in 2032. The facility has retail units sublet to operators, including supermarket Carrerfour and Jones the Grocer.
Aldar Investments' acquisition marks its first significant property deal since its inception in September 2018, and the $326.7m (AED1.2bn) transfer agreement is expected to close in Q2 2019.
Following the agreement between the two companies, Aldar Properties’ chief investment officer, Jassem Saleh Busaibe, has been appointed chief executive officer of Aldar Investments.
Busaibe said the deal with Etihad demonstrated Aldar’s “remarkable start to 2019”, during which the Abu Dhabi company has also restructured facilities management company Khidmah and created property management business Provis with the hope of “disrupting” the market.