Apollo to invest in Aldar through Landmark for US$1.4 billion

  • Will be one of Abu Dhabi’s largest private sector foreign direct investments, enhancing the strength of its real estate market and Aldar’s market leadership position
  • Apollo to Take Direct Minority Stake in Aldar Investment Properties with US$400 Million Equity Investment
  • US$500 million investment in a new land joint venture with Aldar for part of Aldar’s 65 million m² land reserve
  • Apollo to invest US$500 million in perpetual subordinated bonds issued by Aldar Investment Properties representing the region’s largest corporate hybrid private placement ever

ABU DHABI, United Arab Emirates, 14 Feb. 11, 2022 (GLOBE NEWSWIRE) — Aldar Properties PJSC (“Aldar”) and Apollo Global Management (“Apollo”) (NYSE: APO), one of the world’s largest alternative investment managers, have signed a historic commitment that will see Apollo managed funds and clients invest a total of US$1.4 billion in strategic capital to drive Aldar’s transformational growth initiatives.

The commitments are structured according to the following components:

  • US$500 million: Investment in land joint venture
  • US$500 million: subordinated perpetual bonds issued by Aldar Investment Properties
  • US$300 million: mandatory investment in convertible preferred shares in Aldar Investment Properties
  • US$100 million: Common stock investment in Aldar Investment Properties

The US$500 million land joint venture will enable Aldar to realize long-term value from its extensive land pipeline, while retaining the flexibility to develop or sell the land in line with Aldar’s long-term development strategy .

As part of the deal, Apollo will take a direct minority stake in Aldar Investment Properties at its net asset value, underscoring the underlying strength of its asset base and Apollo’s belief in the company’s growth strategy. , its management capabilities and its ability to capitalize on accretive opportunities. that await us. Aldar Investment Properties is rated Baa1 by Moody’s, the highest credit rating for a non-governmental company in the region.

This investment, for both Aldar Investment Properties and Aldar Group, demonstrates the company’s ability to attract institutional capital into its real estate platforms. It also demonstrates Aldar and Apollo’s ability to execute innovative and diversified capital solutions, as evidenced by Aldar’s first-ever perpetual subordinated bond issuance and the MENA region’s largest hybrid private placement with the longer no-call period.

Commenting on the transaction, Talal Al Dhiyebi, Group Managing Director at Aldar Properties, said: “This historic transaction is a signal to the global investment community that the Abu Dhabi real estate market is on a growth trajectory, supported by significant economic and social reforms, and a leading response to the world in the face of Covid-19. Aldar’s ability to attract a long-term partner such as Apollo underscores the strength of Aldar’s commercial franchise and the quality and investment appeal of the Abu Dhabi property market, both of which are driven by strong fundamentals that underpin long-term economic growth. .”

The transaction follows successful social and economic reforms implemented by the Government of Abu Dhabi which have enhanced the appeal and attractiveness of the emirate as a premier investment destination for institutional and international investors. such as Apollo. The strategic and long-term perspective of Apollo’s investment supports both the fundamentals of the Abu Dhabi real estate market and Aldar as a platform for excellence and continued growth. The long-term agreement, which will see Apollo and Aldar examine other opportunities in the future, will allow Aldar to accelerate and continue its transformational growth program.

Following the transaction, which is expected to close by the end of the first quarter of 2022, Aldar will receive significant cash proceeds which are intended to drive our transformational growth program as we seek to accelerate the effective deployment of capital in our strong development pipeline. and enhance investment opportunities.

Jassem Busaibe, CEO of Aldar Investment, added: “Diversifying our investor base and building partnerships is a key tenet of our growth strategy and is essential to enable us to grow, improve asset diversification and drive growth. benefits. We wholeheartedly welcome Apollo as a strategic long-term investor and look forward to working together to grow our portfolio through value-added and accretive acquisitions. This transaction allows us to further increase the scale of our business and is a crucial step in our journey of growth ahead. »

Apollo CEO Marc Rowan noted, “Apollo is delighted to serve as a long-term financial partner for Aldar and to continue to grow our investments and strategic partnerships in Abu Dhabi and across the United Arab Emirates. By leveraging our global integrated investment platform and permanent capital base, we were able to structure a capital solution to support Aldar’s transformational growth program while enabling our investors to access a very attractive long-term return.

Aldar’s investment marks Apollo’s latest engagement in Abu Dhabi and the United Arab Emirates. It follows a 2020 strategic partnership with Mubadala Investment Company, as well as a long-term joint venture with ADNOC in which Apollo funds and clients led a $2.7 billion investment in a real estate joint venture .

For more information, please contact:

Media
Obaid Al Yammahi
Aldar Properties
+971 2 810 5555

Investor Relations
samar khan
Aldar Properties
+971 2 810 5624

Joudi Issa
Braunschweig
+971 2 234 4600

About Aldar

Aldar Properties PJSC is the leading property developer and manager in the United Arab Emirates with a diversified and sustainable operating model centered on two core businesses: Aldar Development and Aldar Investment.

Aldar Development is a master developer of integrated, liveable and thriving communities in Abu Dhabi’s most desirable destinations including Yas Island, Saadiyat Island, Al Raha and Reem Island. He is responsible for the development of c. Land Bank of 65 million sq m and comprises three businesses: Aldar Projects, which manages Aldar’s fee-based development management activities, including AED45 billion of government housing and infrastructure projects; Aldar Ventures, which incubates and nurtures new business opportunities and new areas of innovation; and Aldar Egypt, the platform focused on the development of mixed-use communities in Egypt.

Aldar Investment is home to Aldar’s core asset management business, comprising a portfolio of over AED20 billion of investment-grade, income-generating real estate assets diversified across the retail, residential, commercial segments and hotelier. It also manages three main platforms: Aldar Education, Aldar Estates and Aldar Hospitality and Leisure. Aldar Education comprises Aldar’s entire education portfolio, including Aldar Academies, Abu Dhabi’s leading education group, with 20 schools, over 26,000 students and a growing network of 3,000 educators from over 100 nationalities, offering a wide range of programs and ancillary services such as a teacher training academy. Aldar Estates consolidates Aldar’s retail operations alongside existing residential and commercial real estate operations within Provis and will additionally include community management under an integrated property management platform. Aldar Hospitality and Leisure looks after Aldar’s portfolio of hospitality and leisure assets, which are anchored around Yas Island and Saadiyat. It includes Aldar’s portfolio of 10 hotels, comprising over 2,900 hotel keys and managing operations at golf courses, beach clubs and marinas.

Aldar’s shares are traded on the Abu Dhabi Stock Exchange (stock quote: ALDAR: UH). It is a profitable, cash-generating business that generates recurring revenue and benefits from a diverse and supportive shareholder base. Aldar operates under high standards of corporate governance and is committed to operating a sustainable, long-term business to deliver continued value to its shareholders.

Aldar is driven by a vision to be a leading property developer and manager in the region by playing a key role in developing quality, comfortable and desirable destinations in which people can live, work and visit.

For more information about Aldar, please visit www.aldar.com or follow us on:

https://www.instagram.com/aldar_properties/?hl=fr

https://twitter.com/AldarTweets

https://www.linkedin.com/company/aldar_properties/

About Apollo

Apollo is a high growth global alternative asset manager. In our asset management business, we seek to provide our clients with excess return at every stage of the risk-reward spectrum, from investment grade to private equity, with a focus on three business strategies: return , hybrid and stocks. For more than three decades, our investment expertise on our fully integrated platform has met our clients’ financial return needs and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by offering a range of retirement savings products and acting as a solution provider to institutions. Our patient, creative and knowledgeable approach to investing aligns our clients, the companies we invest in, our employees and the communities we impact, to expand opportunities and achieve positive results. As of December 31, 2021, Apollo had approximately $498 billion in assets under management. For more information, visit www.apollo.com.

contacts

For Apollo:

Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
[email protected]

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
[email protected]

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