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Abu Dhabi, UAEWednesday 26 September 2018

Aldar says its subsidiaries can own real estate under a government decree

Decree does not state to which subsidiaries the rule applies

Aldar Investment, the fully-owned subsidiary of Aldar properties is starting fixed income investor meetings on 18 September. Sammy Dallal / The National
Aldar Investment, the fully-owned subsidiary of Aldar properties is starting fixed income investor meetings on 18 September. Sammy Dallal / The National

Subsidiaries of Abu Dhabi developer Aldar Properties are allowed to own real estate in the emirate under a government decree.

The Abu Dhabi Exchange-listed company said in a bourse statement that Sheikh Mohamed Bin Zayed, Crown Prince and Deputy Supreme Commander of the Armed Forces, had issued the decree on Monday.

“The decree states that effective July 25, 2018, a subsidiary company which is more than 50 per cent owned directly or indirectly by Aldar Properties may own real estate in Abu Dhabi,” the statement read.

It did not specify to which subsidiaries the decree would apply and Aldar declined to provide further information. The developer is expected to unveil more details at an event at the financial free zone Abu Dhabi Global Market on Wednesday.

The Abu Dhabi state-backed developer entered into a joint venture partnership with Dubai’s Emaar Properties in April to develop around Dh30 billion of real estate projects in the UAE and overseas.

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Read more:

UAE’s top real estate firms boost sales in Q2 but slow market weighs on profit

Abu Dhabi's Aldar Q2 net profit slips 28 per cent as costs rise

New residency laws to boost UAE’s owner-occupier market

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The two companies said they will initially work together on the Saadiyat Grove project on Saadiyat Island in the capital and Emaar’s Beachfront island development in Dubai.

Aldar posted a 10 per cent year-on-year increase in sales revenue to Dh1.5bn for the second quarter of 2018, but a 28 per cent drop in net profit to Dh445m due to a one-off loss on revaluation of investment properties, it said in August.

On Monday, sources said Aldar hired JPMorgan, Standard Chartered and First Abu Dhabi Bank to arrange a US dollar-denominated sukuk issue of at least $750m.

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