UAE’s Aldar and Apollo strike $1.4bln landmark investment deal

UAE’s Aldar and Apollo strike $1.4bln landmark investment deal

US-based buyout firm Apollo Global Management Inc. will invest $1.4 billion in UAE's Aldar Properties in what will be the largest foreign direct investment in Abu Dhabi’s private sector.

As part of the deal, which is expected to close in Q1-2022, Apollo will take a direct minority stake in Aldar Investment Properties with a $400 million equity investment, the UAE-based developer said on Monday in a bourse filing on Abu Dhabi Securities Exchange, where it is listed.

The commitments are structured in the following components:

The joint venture investment will give Nasdaq-listed Apollo access to a portion of Aldar’s 65 million sqm landbank. For Aldar, the JV will allow it to "realise long-term value tied up in its vast landbank, whilst maintaining flexibility to develop or sell the land as per Aldar's long-term development strategy."

Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, said: "Aldar’s ability to attract a long-term partner such as Apollo, underscores the strength of Aldar’s business franchise as well as the quality and investment appeal of the Abu Dhabi real estate market, both of which are driven by robust fundamentals underpinning long-term economic growth.”

Apollo funds and clients have previously led a $2.7 billion investment in a real estate