Through its Aldar Investment business, Aldar Properties PJSC (Aldar) has made its first investment in Ras Al Khaimah, acquiring the 27,000 square meters Al Hamra Mall developed by Al Hamra, a Ras Al Khaimah-based real estate development and investment company, for a total consideration of AED410 million.
In addition to diversifying Aldar Investment’s portfolio, the deal adds scale and scope to its existing portfolio of over AED22 billion in income-generating residential, retail, commercial, hospitality, and education assets.
Aldar Investment will invest in building a new mall, expanding its offerings, introducing more brands with high quality, and enhancing the customer experience to increase sales. In addition, Aldar secured development rights for an additional 11,200 sqm of gross floor area (GFA), with an option to purchase an additional 7,400 sqm for retail and commercial purposes.
Commenting on the transaction, Talal Al Dhiyebi, Group Chief Executive Officer at Aldar said, “Ras Al Khaimah represents an attractive opportunity for Aldar, due to the Emirate’s demographics, strong market dynamics, and tourism sector fundamentals. It has emerged from the pandemic as a key investment destination within the UAE and we look forward to growing our presence over time. Through the Aldar Investment platform, we are assessing opportunities to deploy further capital into new geographies and property types as part of an overarching growth strategy. This initial transaction is very much in line with our plans to leverage Aldar Investment’s strengths to grow, diversify further, and create significant value for our shareholders.”
Jassem Busaibe, Chief Executive Officer at Aldar Investment, added, “As the UAE retail sector continues its robust recovery from the global pandemic, the acquisition of Al Hamra Mall provides Aldar Investment with a significant transformation opportunity in a key development zone in Ras Al Khaimah. Our business has proven remarkably resilient in the challenging environment of the last two years, continuing to deliver steady recurring income. We are therefore in a strong position to expand through acquisitions such as this and deploy our world-class asset management capabilities to deliver significant upside in terms of valuation and income.”
In Ras Al Khaimah, Al Hamra provides premier lifestyle real estate developments and has significant investments in retail, hospitality, and leisure. The Emirate’s growth strategy has seen Al Hamra play a major role in defining the property landscape through its high-profile developments and world-class services.
Benoy Kurien, Chief Executive Officer of Al Hamra Group, said, “Al Hamra Mall is one of the flagship retail and leisure destinations in Ras Al Khaimah and the Northern Emirates. We created a high-value asset which is now being further enhanced by Aldar through its strategic investment. This reflects the tremendous potential of Ras Al Khaimah as a retail and tourist hub that can attract significant inward investments, and the farsighted vision of H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, in developing iconic projects that serve the community. We welcome Aldar to Ras Al Khaimah.”
Al Hamra Mall, a major shopping destination in Ras Al Khaimah, was completed in 2009 by Al Hamra, a Ras Al Khaimah-based property developer and investment company. The property is located in a populous catchment area, which has the potential for growth from tourism and residential and hospitality developments around Al Hamra Village, Al Marjan Island, and surrounding areas.