Aldar Properties announced that it reached an agreement with Tourism Development & Investment Company, (TDIC), to acquire a portfolio of prime real estate assets worth AED3.7 billion (USD 1 billion), in one of the largest real estate acquisitions in the country’s history. The acquisition is expected to fully complete by the end of June 2018 and it is subject to fulfilment of certain conditions.

Aldar has acquired assets located in key destinations, with a focus on Saadiyat Island. This comprises of 14 operating assets within various sectors ranging from hospitality, retail, residential, education and infrastructure, in addition to a selection of prime strategic land plots and projects under development on Saadiyat Island.

The acquisition of TDIC’s operating assets will thus enhance Aldar’s asset management business with an additional stream of recurring revenue in line with its growth investment plan. The acquisition of the land and projects under development will form part of Aldar’s development destination strategy. The acquisition will immediately positively contribute to the performance of both the Development and Asset Management business in 2018 and beyond.

The operating assets being acquired include Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf & Spa and other community retail and leisure assets, and will deliver an incremental net operating income of approximately AED120 million (USD 32 million) to Aldar’s Asset Management portfolio on an annualised basis. The gross development value of the projects under development on Saadiyat Island is AED 2.5 billion (USD 681 million). The land being acquired is located on Saadiyat Island, is infrastructure enabled and includes approximately 1.1 million square meter gross floor area.

Talal Al Dhiyebi, chief executive officer of Aldar Properties, said: “Acquiring assets on Saadiyat Island presents Aldar with an unprecedented opportunity to add significant value to its portfolio. The opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most sought after destinations in the world. We believe this landmark acquisition will further advance Abu Dhabi’s real estate sector and accelerate the development of Saadiyat Island, taking it to the next level. This is a very exciting time for the market, and as its leading player, we’re well placed to take advantage, with the injection of these new assets representing a strong addition to our impressive portfolio.”