ALDAR appoints architect for resort realty project Coconut Island

ALDAR has appointed RW Armstrong & Associates as Architect of Record for its Coconut Island project, a premium island resort project located off the west coast of UAE capital city.

Rami Hreiki, Senior Development Manager, ALDAR Properties said: "Both ALDAR Properties and NCT&HNCT&H are equally committed to upholding high quality standards in all aspects of their work; to deliver on the spectacular promise that Coconut Island holds. We welcome RW Armstrong on board the project and look forward to working with them in raising the bar for Abu Dhabi's real estate developments."

RW Armstrong & Associates will prepare detailed architectural and engineering designs as well as supervise the construction of the real estate project in Abu Dhabi, ensuring that the design intent for this prestigious island resort is met. The real estate project is expected to take shape in the early part of 2011.

/Gowealthy.com/

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Aldar to sell debut Islamic bonds

Aldar Properties, the United Arab Emirates' second-largest property developer by market value, said on Thursday it had mandated banks for its debut dirham-denominated Islamic bond sale. A three-day investor roadshow will begin on May 27, and will take in Abu Dhabi, Dubai, Bahrain and London, it said in a statement on the Dubai bourse website. Two bankers arranging the sale, who declined to named, said it could range from benchmark size to $1.5 billion in value, depending on investor demand. Benchmark size varies from $500 million to $700 million.

Initial sale size and pricing details of the five-year bonds could be set on Wednesday, the bankers said. Aldar's Chief Financial Officer Shafqat Malik declined to outline sale value, but said it would be a benchmark issue. The company sold at least $2 billion in Islamic bonds in February last year.

"It's for financing our projects; we have a huge pipeline," Malik told Reuters. The property firm, with about $65 billion of projects in the pipeline, has been raising funds to spearhead the Abu Dhabi government's drive to develop residential and leisure districts in the world's fifth-largest oil exporter.

Aldar is the latest borrower to return to the Islamic bond, or sukuk, market with a dirham issue after bond sales slowed in the second half of last year, following defaults on US home loans and the ensuing global credit crunch. Expectations that Gulf Arab states may revalue their dollar-pegged currencies to dampen soaring inflation has seen investors pile into Gulf securities denominated in local currencies, breathing life back into the sukuk market.

National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Barclays Capital, Credit Suisse, Dubai Islamic Bank, First Gulf Bank, Lehman Brothers and Noor Islamic Bank have been mandated as joint lead arrangers and bookrunners for the sale. The bonds will be based on an ijara, or leasing structure. Islam bans interest, and bonds are based on physical assets such as property, which pays a rent to bondholders.

In April, the developer said it would sell $969 million of convertible bonds to state-controlled investment firm Mubadala Development Co and agreed a $599 million Islamic lending facility from a group of UAE banks. Standard and Poor's Rating Services assigned the developer an A- long-term and A2 short-term corporate rating with a stable outlook, on April 25. (Reuters)

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Aldar Properties proposed sukuk assigned 'A-'

Standard & Poor's Rating Services said it has assigned its 'A-' long-term senior unsecured debt rating to a proposed issue of sukuk al-ijara certificates denominated in United Arab Emirates dirham and that the ratings are equalized with the long-term ratings on United Arab Emirates-based property developer Aldar Properties PJSC.

This reflects limited contractually senior liabilities and structural subordination issues. Aldar's future lending is expected to be on an unsecured basis, the rating agency said.

S&P has 'A-/A-2' ratings with a stable outlook on Aldar, and said the corporate credit ratings on Aldar reflect its strong market position in the rapidly growing Abu Dhabi property development market, large land bank, close relationship with the government in project planning, and growing investment property portfolio.

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ALDAR partners with Taj Hotels Resorts and Palaces

ALDAR Properties, the leading Abu Dhabi-based property developer's Hotels and Hospitality division signed an exclusive agreement with one of Asia's largest, premier international hospitality providers Taj Hotels Resorts and Palaces.

The agreement was signed by Paul Bell, Managing Director, ALDAR Hotels and Hospitality, and Raymond N. Bickson, Managing Director and Chief Executive Officer of The Indian Hotels Company Limited, which owns and operates 79 Taj Hotels Resorts and Palaces across the world.

The signing took place on the opening day of the Arabian Hotel Investment Conference which included a Summit on India highlighting prime Indian investment deals and projects being undertaken in the Subcontinent as well as Indian brands making an entrance into the Middle East.

"Aligning with leading internationally recognised hospitality brands is part of ALDAR's strategy to bring high quality investment opportunities to our developments. This agreement signifies ALDAR's commitment to bring world-class players to our market, and to Abu Dhabi," commented Ronald Stephen Barrott, CEO of ALDAR Properties.

The exclusive agreement between ALDAR Hotels and Hospitality and Taj Hotels Resorts and Palaces will cover a number of hotel projects. The first hotel to be developed by ALDAR Hotels and Hospitality under the agreement is a five-star, 500 room luxury resort hotel which will be in a spectacular waterfront location on ALDAR's mega entertainment destination, YAS Island. The hotel will be branded as a 'Taj Palace' Hotel on the lines of the elegant, original palace hotels of the Taj and will have facilities and services to match the exceptional location.

Commenting on the agreement Paul Bell, Managing Director, ALDAR Hotels and Hospitality stated, "Signing this agreement after the Summit on India during the Arabian Hotel Investment Conference is significant as it brings together Abu Dhabi's leading development company with one of India's foremost luxury international hospitality brands. This Summit on India is a testament to the growing popularity of Indian brands in this region and ALDAR Hotels and Hospitality is delighted to be able to partner with Taj Hotels and Resorts to further our objective of combining world class brands with world class locations " Raymond Bickson, Managing Director & CEO, Taj Hotels Resorts and Palaces commented, "We are delighted to enter into this strategic exclusive agreement with ALDAR Hotels and Hospitality as they re-define Abu Dhabi's hospitality landscape.

We are looking forward to becoming a part of the phenomenal YAS Island destination and to delivering the Taj brand of service and product to this exceptional project and others in Abu Dhabi. Indian international brands are becoming widely sought after as this Summit on India has revealed, and Taj Hotels Resorts and Palaces is very pleased to be working with leading companies such as Aldar Hotels and Hospitality to develop its brands in the region." "Today, the UAE, forms part of a strategic group of countries in the Gulf region. Leisure and hospitality in this region is growing exponentially and it is important for the Taj Hotels to be present in this region, which is rapidly morphing into a tourism hub of the future." The Arabian Hotel Investment Conference's Summit is taking place from 3-5 May at Madinat Jumeirah in Dubai. WAM

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Abu Dhabi's Aldar Properties rated 'A-/A-2' with stable outlook - S&P

Standard & Poor's Rating Services said it has assigned its 'A-' long-term and 'A-2' short-term corporate credit ratings with a stable outlook to Aldar Properties PJSC, the largest property developer in Abu Dhabi in terms of land bank.

The ratings reflect the company's strong position in the rapidly growing Abu Dhabi property development market, Aldar's large land bank, close relationship with the government, and growing investment property portfolio, S&P said.

S&P added the ratings reflect its expectation of strong support from the government of the emirate of Abu Dhabi, reflecting its involvement in Aldar and the company's importance to the government's strategy of diversifying the economy. /Forbes/

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Abu Dhabi's Aldar Q1 profit triples

Aldar Properties ALDR.AD, the second-biggest UAE property developer by market value, said first-quarter profit tripled on sales of land and property after relying on leasehold in the previous year.

Net income in the three months to March 31 surged to 1.366 billion dirhams ($372 million), or 0.59 dirhams per share, compared with 450.67 million dirhams, or 0.26 dirhams per share, in the year-earlier period, the Abu Dhabi state-controlled developer said.

"It is the sales of land and property that drove net profit so high in the first quarter," Shafqat Malik, chief financial officer told Reuters.

Deutsche Bank and Dubai-based investment bank Shuaa Capital had forecast in a Reuters survey last month that Aldar would make a first-quarter profit of 1.1 billion dirhams and 650 million dirhams respectively.

Asked if the firm would be able to sustain a similar level of growth, Malik said: "Yes we will show healthy growth on a year on year basis but not every quarter like this."

"It is a development company and the deals are bulky ones so in every quarter you may not do such deals," he added.

Revenue in the first three months of 2008 stood at 2.23 billion dirhams. (Reuters)

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ALDAR Properties signs an Islamic Ijara facility with consortium of leading regional banks

ALDAR Properties PJSC, the renowned Abu Dhabi-based property developer, announced today a AED 2.203 billion (US$ 600 million) Ijara facility, has been put in place for the company. The Ijara facility is equally financed by Abu Dhabi Commercial Bank, Abu Dhabi National Islamic Finance (a subsidiary of National Bank of Abu Dhabi), Badr Al-Islami (the Islamic Banking Division of Mashreq bank psc), Dubai Islamic Bank, First Gulf Bank and Noor Islamic Bank.

Dubai Islamic Bank (represented by its investment banking arm, Millennium Capital Limited, regulated by the Dubai Financial Services Authority "DFSA") acted as structuring and documentation agent for the transaction, while National Bank of Abu Dhabi acted as security agent. Allen and Overy advised ALDAR on the transaction while Clifford Chance LLP acted as the banks' counsel.

"The success of this transaction, particularly given the challenging global financial environment, is an important endorsement of ALDAR's track record. We are grateful to each of the participating banks for their support and we are proud to have Islamic finance contributing to our business model," said Ahmed Ali Al Sayegh, Chairman of ALDAR.

Further commenting on the announcement, Ahmed Ali Al Sayegh, said: "The successful close of this Ijara facility has again shown ALDAR to be a reputable, trustworthy and sophisticated company in its approach to the debt markets."

The transaction has been approved by the Shariah Supervisory Boards of the lead arrangers, making it fully compliant with the principles of Islamic finance. The facility has a four year tenor and will be used for general corporate purposes in support of ALDAR's business plan and growth model.

Today's announcement comes just a few days after Moody's Investors Service assigned long term local and foreign currency issuer ratings of A3 to ALDAR. Moody's, a leading provider of independent credit ratings, research and financial information to the capital markets, has described the outlook for ALDAR as stable.

"ALDAR's ratings are supported by its leading market position within the Emirate of Abu Dhabi, whose real estate market is bolstered by a combination of strong demographic growth and a growing domestic economy. Ratings also benefit from the company's intention to build a significant rental property portfolio, which will ultimately support a stable and predictable income stream over the medium to long term," it said.

In February this year, the company won awards for its shariah compliant financing, scooping ‘Best Mudarabah Deal' and ‘Best Real Estate Deal' from Islamic Finance News (IFN) as well as ‘Sukuk Issue of the Year' from EuroWeek magazine. Prior to today's announcement, ALDAR had already secured funding in excess of AED 34 billion (US$9.2 billion) to undertake the development projects through convertible bonds (sukuk), capital debt instruments and bilateral debt facilities.

ALDAR Properties has announced developments worth more than US$65 billion since its launch in 2005 including Central Market, Al Raha Beach, Coconut Island, Noor Al Ain, Al Gurm Resort, as well as the YAS Island project which includes a Warner Bros and a Ferrari theme park.

ALDAR has the largest land bank in Abu Dhabi comprising over 34 million square meters, 100% earmarked for specific developments valued at AED 44.2 billion (US$12 billion) as at 31 December 2007. The company is one of the largest UAE-listed property developers by market value and was the first Middle Eastern company to list a sukuk on the London Stock Exchange.




Notes and contacts
About ALDAR Properties

ALDAR Properties PJSC is a premier real estate development, management and investment company with headquarters in Abu Dhabi, UAE. ALDAR was established to create world-class real estate developments for Abu Dhabi, while providing stable and profitable investment portfolio for all our investors and stakeholders.

About Abu Dhabi Commercial Bank ("ADCB")

Abu Dhabi Commercial Bank - ADCB is a diversified full service bank. Other than banking services that span corporate, retail and commercial banking ADCB is active in the areas of treasury derivatives, infrastructure finance, private banking and wealth management.

Our approach is driven by the ability to create value for our customers by leveraging our skills and expertise. Amongst UAE banks, ADCB enjoys one of the largest deposit base with total assets as at 31/12/2007 of AED 106.2 billion and net profit of AED 2085 million in 2007.

Our strong franchise, supported by a network of 44 branches in the UAE, including 2 pay offices, 2 Kiosks besides 2 full fledged branches in India is reflected in our recent rating of Aa3 by Moody's, which is the highest awarded to a bank instrument in the Middle East.

The Government of Abu Dhabi, through Abu Dhabi Investment Council, holds 65% of the capital while the rest is held by various UAE Institutions and Nationals. ADCB's market capitalization as of 31/12/2007 was AED 25.7 Billion (US$7Billion).

About Abu Dhabi National Islamic Finance ("ADNIF", subsidiary of National Bank of Abu Dhabi)

A new Islamic Finance organization which started its business in 2008, is from the breed of the largest, award winning banking institution of the UAE - The National Bank of Abu Dhabi with 40 years of experience and a recipient of many national and international awards.

With an expected official launch in mid 2008, ADNIF as a fully sharia compliant organization has its strength in innovative sharia compliant products, team of well experienced, dedicated Islamic bankers with excellent tract record in Abu Dhabi & beyond. It also has a dedicated team for Legal, Shari'a Compliance, Financial control, Operations & back office, a reputed Sharia Board with the top most sharia scholars of the likes of Dr.Jasim Ali Salem Al Shamsi, Sheikh Nizam Ya'kouibi, and Dr. Abdul Sattar Abu Ghudda.

Through its dedicated Corporate , Retail, Treasury & Investment divisions, ADNIF strategy is to offer a range of Sharia compliant banking & finance services with Islamic banking division -NBAD (managed by ADNIF) which complements each other. In a market flooded with competitors, big promises and complex products, ADNIF believes in providing real solution in line with its clear market positioning and brand-promise ‘......pure & simple'

About "Badr Al-Islami" (Islamic Banking Division, Mashreqbank psc)

Established in 2006, Badr Al Islami is an independently managed business comprising Badr Al-Islami Finance and Badr Al-Islami Banking. Badr Al-Islami Finance, which is majority owned by Mashreq, is a private joint stock Islamic Finance Company and Badr-Al Islami Banking is the Islamic Banking Division of Mashreq.

With a diverse portfolio, Badr Al Islami offers its customers a complete spectrum of Sharia compliant products with high quality services. Its mission is to build a culture for customers' experience around the core Islamic values of trust, integrity, commitment and dedication. Badr Al Islami is subject to the supervision of UAE Central Bank and an independent accounting firm, as well as, the Sharia Supervisory Board.

About Dubai Islamic Bank

DIB, established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company and its share is quoted on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. In a very short space of time it has created market leading services and products that are setting benchmarks for the rest of the sector.

DIB has won the respect of its peers around the world. The bank was recently named by Islamic Finance News the UAE's Best Islamic Bank. DIB has also received many awards from international organizations such as the prestigious "Bank of the Year - UAE" award for 2006 by The Banker magazine and accolades from Euromoney. DIB has garnered the attention of international credit rating firms receiving ratings from Standard & Poor's and Moodys agencies.

About First Gulf Bank ("FGB")

As one of the leading banks in the UAE, First Gulf Bank (FGB) has Shareholder Equity of over AED10 billion making it one of the largest equity based bank in the UAE. Established in 1979 and headquartered in the UAE capital Abu Dhabi, the bank provides financial services in various business and industrial areas with a wide network of branches across the Emirates.

About Noor Islamic Bank ("NIB")

Founded in 2007 in Dubai, Noor Islamic Bank stands as a global icon, transforming the offering and experience of modern Islamic banking to meet the needs of today's consumers. A full service bank, Noor Islamic Bank delivers the broadest range of products for its consumers, with an emphasis on unique and personalised services.

Noor Islamic Bank's products and services are governed by a Shari'ah Board, comprising leading Islamic scholars with extensive experience and expertise in legal, financial and banking-related matters. Noor Islamic Bank has 10 locations across the UAE in Abu Dhabi, Al Ain, Dubai and Sharjah. (PR)

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Abu Dhabi Motor Sport Management (ADMM) to develop and manage Yas Marina Circuit

The Executive Affairs Authority of Abu Dhabi yesterday announced the establishment of a standalone company, Abu Dhabi Motor Sport Management (ADMM) to develop and manage Yas Marina Circuit and the highly anticipated 2009 Formula 1 Etihad Airways Abu Dhabi Grand Prix.

The head of the new organisation will be Philippe Gurdjian.

With construction work well underway, Gurdjian has been working closely with the Executive Affairs Authority and ALDAR Properties for the past six months. The creation of ADMM and his official appointment as CEO marks a crucial watershed for the Yas Marina Circuit strategy, as it formalises operational and day-to-day management structures.

Gurdjian has more than 40 years of experience in motor sport, including the creation of some of the world's most impressive circuits and playing an instrumental role in 24 successful F1 Grand Prix around the world.

"It was critical to find the right person for this job because Yas Marina Circuit is about more than just creating one of the most advanced F1 tracks on the motor racing circuit - it is also about building a global centre for motor sport in the region, as well as a hub for automotive technology research and development," said Khaldoon Al Mubarak, chairman of the Executive Affairs Authority and chairman of ADMM.

'Unrivalled credentials'

"Philippe's impressive and unrivalled motor sport credentials, along with the close partnership he has already established with ALDAR, made the decision an easy one."

Gurdjian's achievements include the construction on Malaysia's Sepang Circuit (1998), Bahrain International Circuit (2004) and the upgrade of Spain's Circuit de Catalunya in Barcelona.

Moreover, he was responsible for organising the first three Grand Prix races in Kuala Lumpur (2000-2002) and the first Bahrain Grand Prix (2004) with great success. Source

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Abu Dhabi Fashion Week

A new chapter is to be written in Abu Dhabi’s cultural history as it hosts the inaugural Abu Dhabi Fashion Week (Emirates Palace Hotel, 15-18 March). Abu Dhabi will reinforce its fast-growing status as a ‘City of Fashion' – a status endorsed by the presence of Missoni and Emilio Pucci Collections at the Abu Dhabi Fashion Week alongside those of the top Designers from across Arabia including Rabih Kayrouz (Lebanon), Aisha Desmal (UAE) and Amina Al Jassim (Saudi Arabia).

The inaugural Abu Dhabi Fashion Week will have the eyes of the global fashion industry firmly focused on it, with Buyers and Representatives of leading regional and international brands, retailers, fashion magazines and media. Guests include: Vittorio Missoni, Albino D’Amato, Laudomia Pucci, Maria Luisa Trussardi, and Giuseppe Rossi (Calvin Klein). Regional and international buyers are also flying in, including those from Neiman Marcus, Saks Fifth Avenue (USA and KSA), along with key opinion makers from the fashion world such as the Editors-in-Chief of Vogue and of Elle magazines. The Italian delegation will be led by Mario Boselli, the President of Camera Nazionale della Moda Italiana.

Top international runway models, hair and make-up technicians and fashion stylists are also being flown in to Abu Dhabi to this world class festival of fashion.

Sponsored by ALDAR, Mubadala, Etihad and Emirates Palace, the four day Abu Dhabi Fashion Week is the result of an alliance between Maven and Camera Nazionale della Moda Italiana (the organizers of Milan Fashion Week) and is one of the initiatives being taken by Maven in Abu Dhabi to create a new value added hub for the fashion industry in the region. It is a glamorous, business driven international event that is rapidly becoming a key focus point for the regional fashion industry.

The success of the Abu Dhabi Fashion Week strategy can be seen by the great enthusiasm which greeted the debut of Milia Maroun and her Milia M Collection on the runways of Milano where in February 2008, Milia became the first ever Arabian Designer to show at the Milano Fashion Week. Alice Teeuwen of Maven commented: “This is just the beginning; there is enormous creative talent in this region. The role of Abu Dhabi Fashion Week is simply to provide a showcase and an infrastructure to help this talent to express itself and develop. In time, we hope to take many more regional designers to the great international shows”.

Alongside the formal Sponsors, the Abu Dhabi Fashion Week has drawn enormous support from within the UAE and from the region. The Abu Dhabi Tourism Authority and the Office of the Brand of Abu Dhabi are keen supporters. Key strategic support has also being given by the Abu Dhabi Women’s General Union, under the presidency of Her Highness Sheikha Fatima bint Mubarak, with whom the Abu Dhabi Fashion Week has signed a long term agreement focused on recognizing and fostering the fashion talent and knowledge in the women of Abu Dhabi. The first fruits of this collaboration will be the appearance of a Collection developed by the students of Sheikh Zayed Private Academy at the Abu Dhabi Fashion Week: 'The Designers of Tomorrow'.

James Khazaei, Director of Sales for ALDAR, the Foundation Sponsor for the Event, said: “The work of ALDAR is summed up by the phrase ‘Building the Nation’ and most of what we do is focused on creating world-class property developments such as Al Raha Beach and the Central Market, but we also seek to support other initiatives, like the Abu Dhabi Fashion Week, that share our vision and ambition for the future of Abu Dhabi”. Source

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Yas Island Project will contribute to the economy of Abu Dhabi

Aldar Property's Yas Island Project, home of the Ferrari World Abu Dhabi theme park as well as attractions from Warner Brothers and five-star hotels and residences, will contribute to the economy of Abu Dhabi, the company said in a statement.

In 2007, the Abu Dhabi International Airport received a record 6.9 million passengers, a 31 per cent increase over the year before. Forecasts for 2008 are around 7.6 million.

As Abu Dhabi is promoted to an international audience attracting a growing number of visitors each year, developments like Yas Island, a multi-use entertainment and leisure destination, are likely to increase the number of visitors with theme parks, attractions and entertainment for families.

Key features

Yas Island will be home to the world's first Ferrari theme park, Ferrari World Abu Dhabi. In addition, the destination will also be home to a Warner Bros theme park and a Formula One racetrack, which will be hosting the Abu Dhabi Grand Prix commencing in 2009. Other attractions will include a Water Park, the first Links golf course in the UAE, and a 250,000 square metre retail mall.

With hotels, water front features and beaches, commercial offices, and spas, Yas Island is expected to become a major leisure destination.

Advantage

"Abu Dhabi has the unique advantage of being in a central location, connecting the eastern and western worlds. As an international player in the property development industry catering to a global contingency, Aldar Properties ensures that all of its developments meet international standards, and are continually setting the benchmark for quality in the industry, which demonstrates the maturity of regional construction and the real estate market of Abu Dhabi," said Ronald Barrott, chief executive officer of Aldar Properties.



Yas Island's completion date is set for 2014.

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ALDAR contributes to the community through the development and rehabilitation of urban areas

ALDAR Properties PJSC, Abu Dhabi’s leading integrated property developer, announced the commencement of development and rehabilitation works in the area surrounding the old cemetery in Al Bateen District, Abu Dhabi.

Steadfast at maintaining the values and principals on which it bases its strategies, ALDAR is working closely with the Committee of Islamic endowment (Awqaf), the Urban Development Committee and other relevant authorities in order to rehabilitate and landscape the area surrounding the old Al Bateen cemetery without disrupting the sanctity of the site. A new wall surrounding the cemetery will also be built, as well as a new entrance on the eastern side, and a parking space.

ALDAR Properties was established to develop land and increase investment opportunities both in Abu Dhabi city and the UAE. Extending its role beyond the development of mega projects in Abu Dhabi, ALDAR continues to contribute greatly to the community through the development and rehabilitation of urban areas in accordance with social values, emphasizing its support to the progress and development of the UAE. Source

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ALDAR looks to Europe

Aldar is on the acquisition trail and the distressed real estate markets of Europe may be where Abu Dhabi's largest developer has set its sights. We speak to CEO Ron Barrott, and find out why greedy builders and banks are getting him down.

Ron Barrott says builders are getting greedy. It may be one reason why the CEO of Abu Dhabi's largest real estate developer is seeking to expand the Aldar empire overseas with possible acquisitions in play in Europe.

"There are a lot of contractors who are getting greedy at the moment and it's not just because costs are going up. What I'd say to them is that people have long memories,'' he says.

Barrott should know. His memory of the building game goes back 37 years. A building engineer by profession, the Englishman was running his own job as a project manager by the age of 20, and went on to found three development companies under the Stannifer name in the UK and the Czech Republic, before arriving in Abu Dhabi to steer the fledgling Aldar Properties.

Now as CEO of the real estate group, Barrott is planning the next chapter in Aldar's phenomenal growth story, that is likely to include an acquisition in Europe and could even involve an overseas stock exchange listing.

Aldar is the second largest developer in the UAE, behind Emaar Properties and like its larger rival, is now seeking to replicate the success of the residential-led master-planned mega project in developing markets overseas.

While Emaar has tended to form joint venture companies in the new markets it enters, Aldar is working with some of its domestic rivals in its foreign forays.

In Abu Dhabi, Aldar is building a theme park, hotels, cinemas and studios with Time Warner Inc. It is also the largest builder of residential units in the UAE capital, across its developments that include the Central Market and the US$18bn Al Raha Beach project, which is intended to house around 120,000 residents.

Abu Dhabi, home to more than 90% of the UAE's oil and gas reserves, is aiming to replicate the success of Dubai in becoming a tourism and entertainment hub for the region by adding hotels, theme parks and museums.

Aldar's overseas push is being spearheaded by ‘Al Maabar', a partnership formed a year ago that also includes Sorouh Real Estate, the second largest publicly traded developer in Abu Dhabi and Reem Investments.

Al Maabar plans to develop projects in Morocco, Libya, Belarus, Tunisia and Kazakhstan, where Aldar is building the US$2bn Norman Foster-designed Abu Dhabi Plaza project, which is similar in scope to the Central Market scheme in Abu Dhabi.

Inmobiliaria Colonial SA, the Spanish developer that was approached by Investment Corporation of Dubai in January, is a company that may fit the profile as a possible acquisition target for Aldar although Barrott says there are no active discussions taking place.

"It could fit the bill but we haven't looked at it. The Spanish market is interesting and the British market is interesting because of the way company values have moved. There is good value,'' he says.

Colonial's market value dropped 56% in six months to about US$4bn, as it incurred more costs servicing debt. Colonial would give its buyer about US$18bn of real estate in Madrid, Barcelona and Paris. Colonial also owns a 15% stake in Fomento de Construcciones & Contratas, the third largest builder in Spain.

We are looking at companies with a good profile and investment and a good development pipeline going forward, as well as fundamentally sound management,'' says Barrott.

Aldar was one of the biggest buyers of debt among UAE real estate developers in 2007, and raised about US$9.2bn from the market to fund its ambitious construction project in Abu Dhabi and overseas.

Despite ongoing turmoil in global credit markets, Barrott does not expect tightening credit conditions to impact adversely on its development pipeline, although he confirms that Aldar's 2008 debt requirement is likely to be less than last year, although its construction schedule is unlikely to slow.

"We will be looking to utilise the markets again. The good news is that since the market caught a bit of a cold last year, it hasn't affected the appetite of our bankers and investors - in fact it generated a proactive response from them,'' he says.

That confidence may be bolstered by the developer's extensive land bank and the fact that it still trades at a significant discount to its net asset value, a key measure for any real estate company. Aldar has a land bank that extends across 34 million sq m (366 million sq ft) and is valued at about US$10.33bn. It saw net profit surge 55% in 2007 to US$529m as it sold more homes in Abu Dhabi.

While Barrott plots Aldar's expansion abroad, at home he has had to deal with spiralling construction costs which have hit the price of diesel, cement and steel and given contractors in the capital an excuse to ramp up tender prices.

Rising labour costs have also been passed on as contractors are forced to pay their workers more.

But Barrott is not convinced that material and labour price inflation in the construction industry excuses contractors for the prices currently being quoted.

"The same thing happened in the UK some years ago when the market went through a rapid growth period and they were marking everything up," he says.

As a result Aldar has formed two joint ventures with construction companies in a bid to gain more control over its supply chain, cost base and build quality.

Aldar Laing O'Rourke, a joint venture with Britain's biggest privately-owned builder, was formed in November 2006 to carry out contracts on Aldar projects in Abu Dhabi, including the US$18bn Al Raha Beach project.

Now the developer has extended the model with a similar tie-up with the Besix construction group, to carry out work on its 2500-hectare Yas Island development that will be home to a Ferrari theme park, a world-class motor sports racetrack as well as golf courses, a polo club and about 300,000 sq m of retail space.

Although Aldar's share price has soared over the last year thanks to an influx of foreign institutional investment and a rising international profile, Barrott believes the company still trades at a "very heavy discount" to its net asset value.

Until now investors have been attracted by the company's large gifted land bank and its preferential position among property companies in Abu Dhabi. Now they will also be looking at its overseas project pipeline.

That will also be of interest to the increasing number of overseas analysts that have started to monitor Aldar in recent months in response to a growing appetite for its stock among outside investors.

Barrott does not rule out the possibility of a future overseas listing in a similar move to Emaar, which is mulling a secondary overseas listing as exclusively reported by Arabian Business in November.

He adds that the company has already listed a sukuk, or Islamic bond, on the London stock exchange.

"Obviously I'm well aware of the opportunities and of what a dual listing could mean.

"If it makes sense for shareholders and is in their best interests at the right time, then we will do it. I look after my shareholders best interests and to minimise their risks and maximise their returns. If that fits the bill at the right time, then maybe," he says.

In the meantime Aldar is focusing on adding to its Abu Dhabi operations in the expectation that house prices will eventually rise higher than Dubai where most foreign investor interest is still concentrated.

Barrott believes that could happen as quickly as five years as the emirates adds infrastructure, boosts tourism numbers and attracts the sort of key corporate occupiers who currently have their headquarters in Dubai but may move when enough quality office space becomes available.

While the capital does not yet rival Dubai as a tourism destination, the growth of the hotel sector and the expansion of its airport will bring more visitors to the emirate, he believes.

"If you look at any city in the world the most valuable real estate is located in the capital city. Abu Dhabi is no different," he says with some conviction.

"You can't get a hotel room in Abu Dhabi at the moment. Come 2009 and onwards you will see a significant difference in tourism numbers," he says.

The developer also plans to start a second mortgage unit offering conventional home loans to tap demand for new houses in Abu Dhabi and ensure competition for home loans for potential investors.

"We've set up an Islamic mortgage company and we are now looking at a conventional mortgage company," says Barrott.

"Mortgage customers are not getting a fair crack of the whip at the moment. There is no reason why our mortgages should be out of line with Europe.

"There is no reason why there should not be the same suite of mortgages on offer here.

Barrott formed his own contractor when he felt that builders were getting greedy. He did the same when he felt mortgage customers were not getting a fair deal. ‘If you can't beat them, join them' would seem to sum up his approach to doing business in the sometimes greedy world of real estate and construction.


From luxury to low cost

Aldar has entered the low-cost housing market in Abu Dhabi and is in discussions with Etihad Airways to provide more employee accommodation after being awarded its first project for the airline to provide homes for about 1000 staff members.

The airline is recruiting extra staff to accommodate surging visitor numbers that is increasing demand for employee accommodation in sectors such as hospitality, aviation and construction.

Abu Dhabi, which owns around 8% of the world's oil reserves, will more than double the number of hotels, adding a further 60 by 2015, the government said in its Abu Dhabi Policy Agenda 2007-2008.

"Tourism is a critical element in the overall development of Abu Dhabi," the government said in the Policy Agenda. "It will stimulate and diversify the economy, generate new private sector opportunities and elevate the emirate's international standing," it said.

Aldar's Abraj Towers housing development, opposite the airline's new headquarters building, is close to completion and will open in phases.

The first phase consists of nearly 200 one-bedroom apartments.

The new project has been developed as part of a joint venture between Etihad Airways and Aldar.

The community around Abraj Towers will eventually house more than 1000 staff in one, two, and three-bedroom furnished and unfurnished apartments.

Etihad currently employs 5700 staff worldwide, including more than 4850 based in the UAE.

Abu Dhabi is seriously aiming to draw 1.2 million tourists a year by 2015, 1.55 million business visitors, and 240,000 exhibition visitors. Source

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Aldar awards ACC additional Dh694m contract for mall

Aldar Properties has awarded Arabian Construction Co (ACC) an additional Dh694 million contract to build the luxury shopping mall at Central Market, representing the final element of the Dh4.2 billion redevelopment of Abu Dhabi's old souk.

This follows Aldar Properties announcement in early September that Abu Dhabi's largest contract at Dh2.7 billion had been awarded to ACC for the Central Market Towers. By adding the retail areas, ACC's contract has been increased to Dh3.4 billion, which sets a new record for the Emirate. Designed by the world renowned International Architecture Firm, Foster and Partners, the development will capture the attention of a premium market looking for quality in retail brands and a sophisticated shopping experience.

The mixed use development includes a five- storey basement car park, 88-storey residential tower, 58-storey 5-star hotel, 58-storey office tower, 16-storey 4-star business hotel, souk, extensive retail outlets, external works and landscaping. The total area is approximately 700,000 square metres.

Central Market is Aldar's project in the heart of the Central Business District of Abu Dhabi. The development will create a premier 'city centre' hot spot for Abu Dhabi, delivering a fashionable city within a city. The souk, which will be located on the Corniche side of Khalifa Street, will connect to the rest of the Central Market development including the 382-metre high residential tower, the tallest tower on Abu Dhabi's skyline. The new retail development will provide a unique, modern high-end retail experience.

Aldar Properties CEO, Ronald Barrott commented, "The redevelopment of the central souk area of Abu Dhabi is a significant project for ALDAR Properties, as it will be a hallmark to the UAE."
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