Aldar completes $179m Abu Dhabi tower purchase

Aldar Properties has completed the acquisition of a tower in Abu Dhabi with tenants that include BAE Systems and McKinsey. (Photo courtesy of Aldar)

LONDON: Aldar Properties has completed the acquisition of International Tower in Abu Dhabi for 658 million dirhams ($179 million).
The Abu Dhabi-based developer said the building, which is located in the city’s Capital Gate district, would immediately contribute to its operating income. It did not disclose the seller.
Aldar CEO Talal Al-Dhiyebi said: “The acquisition of International Tower clearly demonstrates our belief in the strength of Abu Dhabi’s commercial real estate market.”
Like other big property developers in the UAE, Aldar wants to boost its recurring revenues instead of focusing on land and building sales, in an effort to reduce its exposure to boom-bust shocks.
The developer controls a real estate portfolio it estimates to be worth about $4.9 billion and which includes shopping malls, housing and hotels.
Tenants of the building include defense company BAE Systems and management consultancy McKinsey.
The Abu Dhabi office market has been hard hit by job cuts — especially in the energy, property and financial services sectors over the last year.
Total office stock remained largely unchanged in the third quarter according to the latest available research from real estate consultancy JLL.
“Developers remain cautious due to subdued demand for additional office space,” JLL said.