Apollo acquires $400m minority equity stake in Aldar subsidiary

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NYSE-listed Apollo Global Management’s investment vehicles acquired an 11.1 percent minority stake in Aldar Investment Properties, a subsidiary of Abu Dhabi-listed Aldar Properties, for $400 million (AED1.47 billion).

The acquisition is part of Apollo’s previously announced $1.4 billion investment into Aldar’s transformational growth initiatives, UAE state-owned news agency WAM reported.

The transaction involved issuing $400 million of common equity and mandatory convertible preferred equity at 100 percent of net asset value (NAV) into Aldar Investment.

The subsidiary manages Aldar’s core asset management business, comprising over AED23 billion in prime real estate assets across retail, residential, commercial, and logistics segments.

The diversified portfolio has an occupancy rate of 92 percent as of June 30, 2022.

In July, Aldar Investment acquired four prime Grade A commercial towers in Abu Dhabi Global Market, the emirate’s financial centre, for AED4.3 billion.

The completion of the equity transaction follows the issuance by Aldar Investment in March 2022 of $500 million in subordinated perpetual notes to Apollo priced at a coupon of 5.625 percent.

Aldar has deployed and committed over AED11 billion of capital this year as part of its strategy for transformational growth, including over AED7 billion in recurring income assets.