Aldar Properties posts Dh12.65bn loss

Aldar Properties, the largest developer in the capital, posted a loss of Dh12.65 billion (US$3.44bn) for last year after a write-down of the value of its assets.

The Abu Dhabi Government stepped in last month with a funding framework to assist Aldar to finish its projects as the property market remained sluggish and bank lending tight.

"Despite the challenging market conditions that prevailed in 2010, Aldar forged ahead with its commitment to delivering high-quality developments and infrastructure that will have a positive long-term impact for Abu Dhabi," said Ahmed al Sayegh, the chairman of Aldar. "We have also put in place a new financial framework, focused on strengthening the capital structure and ensuring the business has a sustainable future."

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To help Aldar, the Government acquired Dh10.9bn of infrastructure built by the company on Yas Island and Dh5.5bn of its residential units and land, as well as a Dh2.8bn convertible bond issued to Mubadala Development. Mubadala is a strategic investment company owned by the Abu Dhabi Government.

Excluding write-downs, Aldar said it lost Dh1.35bn. The company reported Dh1.79bn of gross revenue.

It had Dh19.15bn of projects under construction at the end of last year.

bhope@thenational.ae