Aldar unit acquires FAB Properties in UAE expansion push

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.

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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).

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.

The specs

Engine: 2.0-litre 4-cylturbo

Transmission: seven-speed DSG automatic

Power: 242bhp

Torque: 370Nm

Price: Dh136,814

Our Time Has Come
Alyssa Ayres, Oxford University Press

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative

Read part one: how cars came to the UAE

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

UAE currency

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Benefits of first-time home buyers' scheme

Priority access to new homes from participating developers
Discounts on sales price of off-plan units
Flexible payment plans from developers
Mortgages with better interest rates, faster approval times and reduced fees
DLD registration fee can be paid through banks or credit cards at zero interest rates

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yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

Keane on …

Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it - they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”

Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season - which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”

Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”

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Did you know?

Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.