Aldar Properties sells large portion of Yas Island project to Abu Dhabi Government after fourth-quarter losses.
Aldar sells major part of Yas Island
Aldar Properties has sold a large portion of its signature Yas Island project, including the Grand Prix circuit, to the Abu Dhabi Government after fourth-quarter losses. Shafqat Malik, the chief financial officer of Aldar, said the asset sales were a way to raise cash during one of Aldar's most challenging periods, and part of a "wider economic diversification of Abu Dhabi". "We sold a number of things, including the internal roads, vacuum systems, the marina, the yacht club - and the racetrack," Mr Malik said, adding that the buyer was the Abu Dhabi Government.
Aldar reported losses of Dh562 million (US$153m) in the fourth quarter, caused by a Dh520m revaluation of properties under development and Dh170m in costs associated with the opening of Yas Island in late October for the Formula 1 Grand Prix. The company has about Dh10.3 billion in liquidity to handle its development programme over the next year, Mr Malik said. "That gives us the firepower going forward for another 12 to 18 months," he said, adding that the company was reviewing its options for further bond issuances, sales or reducing its expenditures to make it through the slow market.