US buyout firm Apollo Global Management Inc. will invest $1.4 billion in Aldar Properties in the UAE in what will be Abu Dhabi’s largest private sector foreign direct investment.

Under the deal, which is expected to close in the first quarter of 2022, Apollo will take a direct minority stake in Aldar Investment Properties with an equity investment of $400 million, the UAE-based developer said Monday in a statement. stock exchange file on Abu Dhabi Securities. Exchange, where it is listed.

The commitments are structured according to the following components:

  • $500 million investment in land joint venture
  • $500 million in perpetual subordinated notes issued by Aldar Investment Properties
  • Mandatory investment of $300 million in convertible preferred shares in Aldar Investment Properties
  • $100 million common equity investment in Aldar Investment Properties

The joint venture investment will give Nasdaq-listed Apollo access to a portion of Aldar’s 65 million sqm land bank. For Aldar, the joint venture will allow it to “realize long-term value from its extensive land pipeline, while retaining the flexibility to develop or sell the land in accordance with Aldar’s long-term development strategy”.

Talal Al Dhiyebi, Group Managing Director at Aldar Properties, said: “Aldar’s ability to attract a long-term partner such as Apollo underscores the strength of Aldar’s commercial franchise and the quality and appeal investments from the Abu Dhabi real estate market. , both of which are driven by strong fundamentals that underpin long-term economic growth.

Apollo funds and clients have already led a $2.7 billion investment in a real estate joint venture with state oil company ADNOC. In addition, Abu Dhabi’s state-owned fund Mubadala Investment Co is the lead funder of an Apollo credit unit established in 2020.

(Reporting by Brinda Darasha; editing by Seban Scaria)

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