Aldar acquires Abu Dhabi office building, plans to boost income

Abu Dhabi property developer Aldar has acquired a commercial office building in Capital Centre as part of a Dhs 3bn investment plan.

The acquisition of the 23,000 square-metre Daman House is part of the company’s plans to grow its recurring revenues through investment in new and existing assets.

“The acquisition we are announcing fits perfectly with our strategy of increasing our recurring revenue base and demonstrates our ability to take advantage of value accretive opportunities when they arise,” said Aldar Properties chief executive Mohamed Al Mubarak.

The acquisition adds to the Dhs 900m Aldar has already committed in the extension of Al Jimi Mall in Al Ain and the construction of Al Mamoura School in Abu Dhabi announced in November.

The Dhs 410m mall extension will add 33,000 square metres of leasable retail space to the existing 43,000 sqm facilities.

Al Marmoura School, meanwhile, is expected to be completed in 2016 at a cost of Dhs 160m and will include a co-educational primary school and girls-only secondary school. It will be the seventh school in Aldar’s portfolio.

Together the three assets will generate around Dhs 90m in net operating income a year.

The company has set a target of Dhs 2.2bn in net operating income by 2020.