Aldar Acquires Tower in Dubai DIFC for $626 Million

Deal News | Dec 04, 2024 | Zawya

Aldar Acquires Tower in Dubai DIFC for $626 Million

Abu Dhabi's largest property developer, Aldar Properties, has completed a significant acquisition in Dubai's prestigious financial hub, the Dubai International Financial Centre (DIFC). Aldar has purchased a commercial tower for AED 2.3 billion ($626 million) from H&H Development, a prominent Dubai developer known for its luxury projects. This transaction marks one of the largest acquisitions of its kind in the region. The tower, which will feature 40 floors dedicated to commercial and retail operations, is scheduled for completion in 2028. Aldar is partly owned by Mubadala and International Holding Company, and it has been experiencing substantial financial growth, with reported net profits rising 52% year-on-year to AED 4.6 billion over the past nine months. H&H Development has been a key player in the Dubai real estate scene since its inception in 2007, engaging in development, asset management, and investment. This acquisition strengthens Aldar's position within the UAE's competitive real estate market.

Sectors

  • Real Estate
  • Commercial Development
  • Investment

Geography

  • United Arab Emirates – The transaction and both main companies involved are based in the UAE, with the acquired property located in Dubai's DIFC.
  • Dubai – The commercial tower is located in Dubai's DIFC, a major financial hub.
  • Abu Dhabi – Aldar Properties, the acquiring company, is based in Abu Dhabi, UAE.

Industry

  • Real Estate – The acquisition involves a commercial property transaction in the real estate sector, highlighting the activities of a major property developer in the UAE.
  • Commercial Development – The project is centered around a new commercial development in the DIFC area, significant for commercial and retail purposes.
  • Investment – The acquisition reflects strategic investment decisions in the commercial property market.

Financials

  • $626 million – The acquisition price of the commercial tower in Dubai's DIFC by Aldar Properties.
  • AED 4.6 billion – Aldar Properties' reported net profit for the nine months of 2024, showcasing a 52% increase year-on-year.

Participants

NameRoleTypeDescription
Aldar PropertiesAcquirerCompanyAbu Dhabi's largest property developer involved in real estate development across the UAE, Egypt, and London.
H&H DevelopmentVendorCompanyA Dubai-based developer, asset manager, and investor, known for projects in the DIFC and broader UAE real estate market.
MubadalaShareholderCompanyA global investment company that holds a 25% stake in Aldar Properties.
International Holding CompanyShareholderCompanyA diversified conglomerate with a 26% stake in Aldar Properties.