Merger will create GCC property management giant

Aldar

• Eltizam and Aldar deal comes during Mena merger boom
• Aldar says arrangement will make it property ‘national champion’
• UAE registered 42 merger deals worth $2bn in Q1

Plans have been announced to merge Abu Dhabi’s Aldar Estates and Eltizam Asset Management Group, creating the GCC’s largest property and facilities management company.

Aldar Properties will hold a majority stake with the remaining shareholding held equally between International Holding Company and Adnec Group, Eltizam’s joint owners.

According to a statement the merger will see Aldar Estates become a “national champion” in property and facilities management, with potential for further expansion across the region.

• Mergers bloom in Mena with deals worth $26bn
• Aldar buys landscaping firm Basatin for $41m  
• Abu Dhabi set to begin work on Hudayriyat mega project

The mergers and acquisitions market in the Mena region recorded a 42 percent year-on-year increase in mergers in the first three months of 2023, according to Ernst & Young.

A total of 165 deals worth $25.8 billion were registered in the first quarter. The UAE was the most active country in terms of both volume and value, registering 42 deals worth $2 billion.

The merger between Aldar Estates and Eltizam means Aldar Estates will now manage a portfolio of more than one million sq m and facilities management contracts valued at about AED2.5 billion ($680.5 million).

Its portfolio of residential units under management will grow from 77,000 to approximately 135,000.

This coincides with plans to develop up to 76,000 new homes over the next five years in Abu Dhabi to meet rising demand for residential property. 

The emirate’s executive council signed off on a budget of over $23 billion in May for a string of residential neighbourhoods with new homes and development sites. 

Aldar Properties posted a 22 percent increase in net profit for the first quarter of 2023, with record quarterly development sales of AED4.5 billion and strong contributions from recurring income portfolio.

The company is also developing 63,000 sq m of commercial space within Abu Dhabi Global Market on Al Maryah Island in partnership with Mubadala Investment Company.