Aldar Properties, the leading real estate developer, investor, and manager in the UAE has completed the 100% acquisition of London-based developer, London Square, signalling its first international acquisition beyond the MENA region.
The acquisition, representing an enterprise value of £230 million, demonstrates Aldar’s strategic vision of expanding into key and mature international markets and is aimed at accelerating growth, diversifying revenue streams, unlocking synergies, and driving cross-selling opportunities.
Aldar is the largest real estate group in Abu Dhabi and one of the largest and most recognised developers in the Middle East and North Africa (MENA) region. It has recently expanded into Dubai and Ras Al Khaimah, as well as having a presence in Egypt, and the London Square acquisition marks its first expansion into key international markets outside of the Middle East and North Africa region.
Aldar aims to gain a meaningful foothold in the diverse London property market through the acquisition, known for its resilience and enduring appeal to both local and international investors.
The transaction represents a new phase of growth for both companies and will provide two-way benefits, delivering a positive impact on communities and bringing new opportunities to the customers each company serves.
Aldar has outlined its intent to leverage its expertise and balance sheet to support London Square’s land acquisition strategy to enable it to develop larger and prime central London sites. Additionally, the transaction is expected to have a positive impact on sales, given the potential for capitalising on cross-selling across both companies’ international customer networks, with Aldar’s development sales during the first nine months of 2023 totalling £4.15 billion (AED 19.4 billion).
Talal Al Dhiyebi, group chief executive officer of Aldar Properties, said: “Our recently announced international expansion strategy centres on exploring opportunities to acquire or partner with established operating platforms in our target markets. The acquisition of London Square represents our first market entry outside of the MENA region, and is a testament to the company’s management team, governance framework, and business model which has consistently delivered strong performance.”
“The transaction, which is synergistic in nature, gives us the ability to leverage our mutual strengths, shared values, and common approach to homebuilding to scale London Square while bringing the best of Aldar to bear in the UK’s property market, as we continue to build our foothold outside of the region.”
Adam Lawrence, founder and chief executive of London Square, said: “This is an outstanding outcome for London Square. Aldar is an exemplary company with an unrivalled reputation and their strength and breadth of knowledge and experience will enable London Square to flourish and extend its presence across Greater London and the Southeast.”
“Since establishing London Square in 2010, the company has enjoyed significant organic growth, with the support of Ares Management funds for the past nine years. We would like to thank Ares Management for their contribution to the success of London Square. Becoming part of Aldar is the beginning of an exciting new chapter for the future of London Square. We look forward to playing a leading role in tackling the housing shortage by providing more much-needed homes in the capital and surrounding areas where there is a continuing lack of supply.”
