ABU DHABI, Feb 27 (Reuters) – Aldar Investments, a subsidiary of Aldar Properties, said on Wednesday it had acquired full ownership of Etihad Plaza and Etihad Airways Centre for 1.2 billion dirhams ($327 million).
Three properties – Etihad Plaza, Etihad Airways Centre and Etihad Airways headquarters – had previously been held in three, fifty-fifty joint ventures between Aldar Properties and Etihad.
Now, Etihad will take 100 percent ownership of Etihad Airways HQ, while the other two properties will be under the ownership of Aldar Investments, a statement from Aldar said.
As part of the deal, Aldar will assume existing debt within the Etihad Plaza and Etihad Airways Centre joint ventures in line with Aldar Investments’ debt policy to hold 35-40 percent loan to value.
The deal is expected to be completed in the second quarter of 2019.
The deal adds 789 residential units, 17,940 square metres (193,100 sq ft) net leasable area (NLA) of office space and 11,000 sq m NLA of retail space to Aldar Investments’ portfolio.
The full ownership of these assets will enable Aldar Investments to recognise annualised annual net operating income of 0.1 billion dirhams, the statement said.
Aldar Investments also said it appointed Jassem Busaibe as chief executive of the company.
Earlier this month, Aldar Properties reported a 2018 full-year profit attributable to shareholders of 1.86 billion dirhams compared to 2 billion dirhams a year ago. (Reporting By Stanley Carvalho, editing by Neil Fullick)