A unit of Aldar Properties has acquired FAB Properties, which provides property management services, as Abu Dhabi’s biggest listed developer continues to expand its portfolio in the country.
Under the deal, Aldar Estates will integrate a property management portfolio of 22,000 residential units across 600 properties into its expanding platform in the UAE, Aldar said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
“The acquisition of FAB Properties adds further scale to our business through a diverse portfolio of properties under management and access to a broader client base across the UAE, with room for further growth,” said Talal Al Dhiyebi, group chief executive of Aldar and chairman of Aldar Estates.
Pending regulatory approvals, the acquisition is expected to bolster Aldar Estates' recurring income due to strong occupancy across the FAB Properties portfolio and its “robust” 2022 financial performance, Aldar said.
Aldar Estates will also benefit from a “stable” growth pipeline as the exclusive property management partner for properties financed by FAB, the company added.
FAB Properties, a unit of the UAE's biggest lender First Abu Dhabi Bank, was set up in 2011.
It specialises in end-to-end real-estate solutions, ranging from marketing, leasing, facility management and financial reporting.
The sale is in line with FAB Group's plan to "leverage strategic partnerships to create value and to enhance specialised service offerings", the lender said in a separate statement to the ADX on Monday.
The transaction is not expected to have a material impact on the group's financial performance for the full year of 2023, it said.
“Through this transaction and future collaborations with Aldar Estates, FAB will further enhance the property services offering available to our clients, while creating new opportunities to support their growth,” said Hana Al Rostamani, group chief executive of FAB.
Aldar is at the heart of Abu Dhabi’s efforts to develop its property sector. The developer continues to expand its portfolio, announcing a number of new deals this year.
In July, Eltizam Asset Management Group, a property and facilities management services company that is jointly owned by IHC and Adnec Group, was merged with Aldar Estates.
The latest deal will boost Aldar Estates' portfolio of residential units under management to 157,000.
That includes prime retail and commercial spaces with a gross leasable area of more than one million square metres, and facilities management contracts valued at about Dh2.5 billion ($681 million).
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The Ansam development on Yas Island. Photo: Aldar -
Lea, located on the northern shores of Yas Island. Photo: Aldar -
The Mayan development on Yas Island. Photo: Aldar Properties -
Noya, a residential community on Yas Island. Photo: Aldar Properties -
The Water’s Edge project on Yas Island. Photo: Aldar -
The West Yas waterfront on Yas Island. Photo: Aldar Properties -
The Mamsha Al Saadiyat development. Khushnum Bhandari / The National -
Saadiyat Reserve. Photo: Aldar -
The Arc, left, part of the Shams complex on Al Reem Island. Christopher Pike / The National -
Meera at Shams Abu Dhabi on Reem Island. Photo: Aldar Properties -
The Reflection development on Al Reem Island. Photo: Aldar -
Sun and Sky Towers on Al Reem Island. Ravindranath K / The National -
The Bridges on Reem Island. Photo: Aldar -
The Gate Towers on Reem Island. Delores Johnson / The National -
Al Muneera at Al Raha Beach in Abu Dhabi. Photo: Better Homes -
Al Zeina apartment blocks at Al Raha Beach. Ravindranath K / The National -
Al Hadeel apartment complex at Al Raha Beach. -
Aldar’s Al Rayyana development. Photo: Aldar -
Al Ghadeer residential area in Abu Dhabi. Pawan Singh / The National -
The Eastern Mangroves. Photo: TDIC -
A rendering of Nareel Island, one of three new residential projects being developed by Aldar Properties in Abu Dhabi. Photo: Aldar -
Villas at Sas Al Nakhl in Abu Dhabi. Galen Clarke / The National -
The World Trade Centre building and Burj Mohammed Bin Rashid tower. Mona Al Marzooqi / The National
The UAE property market has bounced back strongly from the coronavirus pandemic thanks to government initiatives, higher oil prices and other measures to support the economy.
Abu Dhabi recorded 10,557 real estate transactions worth Dh46.33 billion in the first half of 2023 amid strong demand from buyers, according to official data.
The value of the deals more than doubled during the six-month period, while the volume of transactions, which include property sales and mortgages, rose by 41 per cent on an annual basis, the Abu Dhabi media office reported, citing data from the Department of Municipalities and Transport.
