Aldar Properties has expanded its hospitality portfolio with the acquisition of Nurai Island Resort, as well as two new Abu Dhabi islands intended for residential development.
Abu Dhabi’s biggest listed developer said it will undertake a refurbishment plan and extend the hospitality and food and beverage offering at Nurai Island Resort.
The two islands within the Abu Dhabi archipelago are “envisioned to be developed with high-end, luxury beachfront villas”, the developer said on Friday.
“The acquisition allows Aldar to tap into an operational luxury offering that is highly attractive to select clientele,” it said.
The developer did not disclose the value of the deal.
Nurai Island Resort is the company’s first beachfront hospitality asset in Abu Dhabi and its second in the UAE. In April, it bought the Rixos Bab Al Bahr hotel in Ras Al Khaimah in a Dh770 million ($210m) deal.
Nurai Island, completed in 2015, is located two kilometres off the coast of Saadiyat Island and is accessible by a 10-minute boat ride or by helicopter.
As well as the luxury resort, the island also includes third party-owned water and estate villas, a selection of which form part of the hotel’s rental pool with rental-sharing agreements.
“The multifaceted element of the deal provides us with significant room for both development potential and operational improvements on an existing and ready to perform luxury asset,” said Jassem Busaibe, chief executive at Aldar Investment.
“It also allows us to leverage our asset management and execution capabilities to drive further value, as we continue to deploy capital effectively and drive forward with our ambitious growth agenda.”
Last year, Aldar adopted a new group operating model and organised its business into two segments. Aldar Investment is responsible for managing its Dh22 billion portfolio of recurring income assets, including its hospitality portfolio, while Aldar Development is responsible for building the company's 75 million-square-metre land bank.
The acquired islands “will attract holiday home buyers as well as buy to let investors, who will command a premium for their properties within a niche section of the short-term letting market”, said Jonathan Emery, chief executive at Aldar Development.
Earlier this week, Alpha Dhabi Holding, a subsidiary of Abu Dhabi-listed conglomerate International Holding Company, increased its stake in Aldar Properties to become the parent company of the property developer.