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Aldar unit acquires FAB Properties in UAE expansion push

Aldar unit acquires FAB Properties in UAE expansion push

A unit of Aldar Properties has acquired FAB Properties, which provides property management services, as Abu Dhabi’s biggest listed developer continues to expand its portfolio in the country.

Under the deal, Aldar Estates will integrate a property management portfolio of 22,000 residential units across 600 properties into its expanding platform in the UAE, Aldar said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

“The acquisition of FAB Properties adds further scale to our business through a diverse portfolio of properties under management and access to a broader client base across the UAE, with room for further growth,” said Talal Al Dhiyebi, group chief executive of Aldar and chairman of Aldar Estates.

Pending regulatory approvals, the acquisition is expected to bolster Aldar Estates’ recurring income due to strong occupancy across the FAB Properties portfolio and its “robust” 2022 financial performance, Aldar said.

Aldar Estates will also benefit from a “stable” growth pipeline as the exclusive property management partner for properties financed by FAB, the company added.

FAB Properties, a unit of the UAE’s biggest lender First Abu Dhabi Bank, was set up in 2011.

It specialises in end-to-end real-estate solutions, ranging from marketing, leasing, facility management and financial reporting.

The sale is in line with FAB Group’s plan to “leverage strategic partnerships to create value and to enhance specialised service offerings”, the lender said in a separate statement to the ADX on Monday.

The transaction is not expected to have a material impact on the group’s financial performance for the full year of 2023, it said.

“Through this transaction and future collaborations with Aldar Estates, FAB will further enhance the property services offering available to our clients, while creating new opportunities to support their growth,” said Hana Al Rostamani, group chief executive of FAB.

Aldar is at the heart of Abu Dhabi’s efforts to develop its property sector. The developer continues to expand its portfolio, announcing a number of new deals this year.

In July, Eltizam Asset Management Group, a property and facilities management services company that is jointly owned by IHC and Adnec Group, was merged with Aldar Estates.

The latest deal will boost Aldar Estates’ portfolio of residential units under management to 157,000.

That includes prime retail and commercial spaces with a gross leasable area of more than one million square metres, and facilities management contracts valued at about Dh2.5 billion ($681 million).

Lea, located on the northern shores of Yas Island. Photo: Aldar
The Mayan development on Yas Island. Photo: Aldar Properties
Aldar Properties announced the launch of Noya, a master-planned residential community on the iconic Yas Island. The AED 940 million development is located in an investment zone, with all properties available for purchase on a freehold basis. Courtesy Aldar Properties
The Water’s Edge project on Yas Island. Photo: Aldar
The West Yas waterfront on Yas Island. Photo: Aldar Properties
The Mamsha Al Saadiyat development.  Khushnum Bhandari / The National
Saadiyat Reserve. Photo: Aldar
Abu Dhabi, United Arab Emirates, August 12, 2015:     General view of The Arc, left and base of the Gate Towers, left in the Shams development complex on Al Reem Island in Abu Dhabi on August 12, 2015. Christopher Pike / The National

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Section: Business *** Local Caption ***  CP0812-bz-STOCK-Shams38.JPG
Meera at Shams Abu Dhabi on Reem Island. Photo: Aldar Properties
Rendering of boutique residential Reflection in Al Reem Island. Courtesy Aldar
ABU DHABI - UNITED ARAB EMIRATES - 16JAN2014 - Children play area in Sun and Sky towers on Al Reem Island in Abu Dhabi. Ravindranath K / The National (To go with Lucy article for business feature)
The Bridges on Reem Island. Photo: Aldar
The Gate Towers on Reem Island. Delores Johnson / The National
Al Muneera at Al Raha Beach in Abu Dhabi. Photo: Better Homes
ABU DHABI - UNITED ARAB EMIRATES - 05AUG2015 - Al Zeina apartment properties in Al Raha Beach area in Abu Dhabi. Ravindranath K / The National (Business Stock)

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Aldar’s Al Rayyana development. Courtesy Aldar
ABU DHABI ,  UNITED ARAB EMIRATES , AUGUST 28 – 2019 :- Jon Edwards ( in white t-shirt ) at the Al Ghadeer residential area in Abu Dhabi. These residents are worried about the dangerous driving by the car drivers around the area. ( Pawan Singh / The National ) For News. Story by Patrick
The Eastern Mangroves. Photo: TDIC
Nareel Island  is one of three new residential developments  to be launched by Aldar Properties in Abu Dhabi. Rendering courtesy Aldar
United Arab Emirates - Abu Dhabi - September 2nd, 2009:  Villas at Sas Al Nakhl in Abu Dhabi.  (Galen Clarke/The National)  *** Local Caption ***  GC09_09012009_Villas.JPG
Abu Dhabi, United Arab Emirates. December 2, 2015///

High-end apartments for rent in the Corniche. World Trade Center building and  Burj Mohammed bin Rashid tower, view from street. Abu Dhabi, United Arab Emirates. Mona Al Marzooqi/ The National 

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Section: Business  *** Local Caption *** 151202-MM-BZ-STOCK-Corniche31783-016.JPG

The Ansam development on Yas Island. Photo: Aldar

The UAE property market has bounced back strongly from the coronavirus pandemic thanks to government initiatives, higher oil prices and other measures to support the economy.

Abu Dhabi recorded 10,557 real estate transactions worth Dh46.33 billion in the first half of 2023 amid strong demand from buyers, according to official data.

The value of the deals more than doubled during the six-month period, while the volume of transactions, which include property sales and mortgages, rose by 41 per cent on an annual basis, the Abu Dhabi media office reported, citing data from the Department of Municipalities and Transport.


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