Abu Dhabi – Mubasher: Aldar Properties has issued $1 billion worth of subordinated hybrid notes to Apollo Global Management through a private placement, building on the transformational growth initiatives of the real estate developer, according to a press release.
The transaction is raising additional capital to support Aldar’s strong growth momentum while optimizing its 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.
Moreover, the hybrid notes transaction includes repayment of $500 million perpetual subordinated notes issued by AIP to Apollo, which comes as part of the initial $1.40 billion debt and equity investment by the asset management firm into Aldar in 2022.
Following the issuance, Aldar’s ownership in AIP has increased to 90%, with Apollo owning the remaining 10%.
Meanwhile, the issuance, conducted to Apollo-managed affiliates, funds and clients, represents the largest corporate hybrid private placement executed in the region, and brings Apollo’s total investment in Aldar to approximately $2.90 billion since 2022.
Group Chief Financial and Sustainability Officer at Aldar, Faisal Falaknaz, said: “This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar’s strategy, financial management and growth trajectory.”
Falaknaz noted: “The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalize on attractive opportunities across our core markets.”
The official concluded: “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.”
From their part, Apollo Partner Jamshid Ehsani said: “Completing our fifth investment with Aldar speaks directly to Apollo’s ability to structure flexible capital solutions that are responsive to the needs of both our corporate clients and our investors.”
Ehsani elaborated: “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.”
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.
Earlier this month, the real estate developer unveiled The Wilds Residences as a new phase of its landmark nature-driven community.
It is worth noting that Aldar’s financial performance in 2025 reflected net profits worth AED 8.83 billion, while its revenue and rental income reached AED 33.81 billion.
