Aldar Properties has raised $1 billion in capital through the issuance of subordinated hybrid notes to Apollo Global Management – one of the world’s biggest alternative asset managers – as Abu Dhabi’s largest listed developer looks to boost growth amid a continuing property boom in the UAE.
The transaction, executed through a private placement, brings Apollo’s total investment in Aldar to $2.9 billion since 2022, the company said in a statement on Friday to Abu Dhabi Securities Exchange where its shares are traded.
The deal optimises Aldar’s capital structure, with the hybrid notes issued at Aldar level, and net proceeds of the transaction injected as equity into Aldar Investment Properties (AIP) – the developer’s unit which holds income-generating real estate assets.
This deal includes repayment of $500 million perpetual subordinated notes that AIP issued to Apollo as part of the initial $1.4 billion debt and equity investment made in 2022.
Following the transaction, Aldar’s ownership in AIP has increased to 90 per cent, with Apollo owning the remainder, Aldar said.
The latest Apollo deal, which Aldar said is value-accretive for shareholders, also strengthens the capital structures of both Aldar and AIP and supports the developer’s balance sheet, the company said.
“This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar’s strategy, financial management and growth trajectory,” Faisal Falaknaz, group chief financial and sustainability officer at Aldar, said.
“The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalise on attractive opportunities across our core markets.”
The deal also raises Aldar’s share of stable recurring income generated through AIP’s portfolio, “which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to $5 billion”, he added.
Developers in the UAE, the Arab world’s second-largest economy, are tapping different financing options including bond and commercial loans to raise additional capital as they move to capitalise on growth opportunities in the country’s booming real estate market.
In January, Aldar issued a $1 billion subordinated hybrid note, which followed another bond issuance of similar size as well as a green sukuk of $290 million last year.
Earlier this month, the developer reported a 36 per cent annual jump in its 2025 profit, driven primarily by its record annual sales, continued in the UAE.
Net profit attributable to equity holders of the company for the twelve-month period surged to Dh7.61 billion ($2.07 billion), Aldar said in a bourse filing at the time
Revenue for the reporting period surged 47 per cent year-on-year to Dh33.8 billion, driven by an expanding portfolio of investment properties. The company’s development revenue backlog rose to a high of Dh71.7 billion, including Dh61 billion in the UAE.
“Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team,” Apollo Partner Jamshid Ehsani said.
“This latest investment reflects Apollo’s continued commitment to Abu Dhabi and the broader region.”
