Abu Dhabi – Mubasher: Aldar Properties has signed a landmark commitment with Apollo Global Management that will allow Apollo-managed funds and clients to invest a total of $1.4 billion in strategic capital to drive Aldar’s transformational growth initiatives.

The funding comprises two equal $500 million amounts allocated for investment into a land joint venture as well as perpetual subordinated notes issued by Aldar Investment Properties, a subsidiary of the listed firm, according to a press release on Monday.

Apollo will also invest $300 million and $100 million for mandatory convertible preferred equity and common equity investment, respectively, in Aldar’s real estate unit.

Upon the agreement, Apollo will take a direct minority stake in Aldar Investment at its net asset value.

The transaction is expected to close by the end of March this year, allowing Aldar to receive significant cash proceeds for its transformational growth agenda.

Apollo’s investment for both the parent company and its subsidiary would demonstrate the ability to attract institutional capital into the entity’s real estate platforms.

Group CEO at Aldar Properties, Talal Al Dhiyebi, said: “Aldar’s ability to attract a long-term partner such as Apollo underscores the strength of Aldar’s business franchise, as well as the quality and investment appeal of the Abu Dhabi real estate market, both of which are driven by robust fundamentals underpinning long-term economic growth.”

Meanwhile, Jassem Busaibe, Aldar Investment’s CEO, said: “This transaction enables us to add further scale to our business and forms a critical milestone of our upcoming growth journey.”

Apollo CEO, Marc Rowan, commented: “Leveraging our global integrated investment platform and permanent capital base, we were able to structure a capital solution to support Aldar’s transformational growth agenda while allowing our investors to access highly attractive, long-dated yield.”

It is worth noting that Aldar Properties generated AED 2.32 billion worth of net profits attributable to the shareholders in 2021, up from AED 1.93 billion in 2020, as shown in its preliminary unaudited financial results.