Saturday, April 12, 2008

Aldar plans first-of-its kind investment funds in UAE

The largest property developer in Abu Dhabi plans to launch four realty investment funds that offer exposure to the booming property market of the emirate.

The Chief Executive Officer of Aldar, Ronald Barrott, said that the funds, one each for retail, office, residential and hotel property, will be launched next year, with a view to expand the funds so as to eventually make it multibillion-dollar vehicles.

The funds will be the first of its kind for Aldar and the UAE. The company, which has about 25 percent of its shares directly or indirectly owned by the government, has its remaining shares floated on the Abu Dhabi Securities Market, with a development portfolio of $65bn. Aldar is responsible for atleast one-third of the development happening in Abu Dhabi.

The final details are yet to be worked out, but, Aldar will manage the funds and carry a certain percentage of shares, with the remainder kept open to domestic and foreign investors.

Abu Dhabi is the richest emirate in the UAE and home to 95 percent of its hydrocarbon resources.

Just as in Dubai, even Abu Dhabi is going through an extraordinary boom to develop and diversify its economy and raise its profile.

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