Real Estate Company Secures Major Investment for Expansion

Aldar, an Abu Dhabi-based developer, has secured $1 billion in long-term capital from Apollo, a global asset manager, through a private placement of subordinated hybrid notes. This significant transaction, one of the largest corporate hybrid deals in the region, strengthens Aldar's balance sheet and increases its focus on recurring income from investment properties. The proceeds will be channeled into Aldar Investment Properties, the platform holding the group's income-generating real estate assets, with a portion used to repay a previous $500 million in perpetual hybrid notes issued to Apollo.

Following this deal, Aldar's ownership in Aldar Investment Properties will rise to 90%, boosting its exposure to stable rental income. This recurring income stream is a key element of Aldar's long-term growth strategy. The investment platform is actively expanding through acquisitions and a substantial develop-to-hold pipeline valued at nearly $5 billion, which is expected to drive consistent earnings growth in the coming years.

This latest investment marks Apollo's fifth investment in Aldar, bringing their total investment to approximately $2.9 billion since their partnership began in 2022. The hybrid notes have a non-call period exceeding ten years and mirror the structure of Aldar's recent public hybrid issuance, which received investment-grade ratings. This capital injection will support Aldar's expansion plans while maintaining financial flexibility.

The deal highlights the continued confidence of major institutional investors in Aldar's strategy and financial management. It also underscores Apollo's commitment to Abu Dhabi and the broader region. The transaction will strengthen Aldar's income base and increase its share of stable, recurring income generated by Aldar Investment Properties' diversified portfolio.