Aldar Properties has issued $1 billion in subordinated hybrid notes to Apollo Global Management through a private placement, raising additional capital to support its growth.
The transaction optimises Aldar’s capital structure, with the notes issued at Aldar level and net proceeds injected as equity into Aldar Investment Properties (AIP), which holds income-generating real estate assets. This transaction includes repayment of $500 million perpetual subordinated notes issued by AIP to Apollo as part of the initial $1.4 billion debt and equity investment by the asset management firm into Aldar in 2022.
The issuance, conducted for Apollo-managed affiliates, funds and clients, represents the region’s largest corporate hybrid private placement, and brings Apollo’s total investment in Aldar to approximately $2.9 billion since 2022. The transaction enhances the resilience of both Aldar’s and AIP’s capital structures, and is intfinished to support Aldar’s balance sheet strength, as well as its growth agfinisha, and is value accretive for Aldar shareholders.
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“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. Importantly, it elevates Aldar’s share of stable, recurring income generated by AIP’s high-quality, diversified portfolio, which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to $5 billion,” stated Faisal Falaknaz, group chief financial and sustainability officer at Aldar.
Jamshid Ehsani, partner, Apollo, stated that completing the fifth investment with Aldar speaks directly to Apollo’s ability to structure flexible capital solutions that are responsive to the requireds of both corporate clients and investors.
“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. This latest investment reflects Apollo’s continued commitment to Abu Dhabi and the broader region.”
Following the transaction, Aldar’s ownership of AIP has increased to 90 per cent, with Apollo owning the remaining 10 per cent.
The hybrid notes issued to Apollo share the characteristics of a recent $1 billion public issuance by Aldar, with a longer non-call period of 10.25 years.
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