Aldar Properties Acquires London Square

Posted by UK Property Forums on 6th December 2023 -

Aldar Properties (Aldar), the leading real estate developer, investor, and manager in the UAE – listed on the Abu Dhabi Securities Exchange with a market capitalisation of GBP 10 billion – has completed the 100 per cent acquisition of London-based developer London Square, signalling its first international acquisition beyond the MENA region.

The acquisition, representing an enterprise value of GBP 230 million (AED 1.07 billion), is aligned with Aldar’s strategic vision of expanding into key and mature international markets. The move aims to accelerate growth, diversify revenue streams, unlock synergies, and drive cross-selling opportunities. By exporting its expertise to the UK market by acquiring an established and reputable operating platform, Aldar will gain a meaningful foothold in the diverse and dynamic London property market, known for its resilience and enduring appeal to local and international investors. 

Aldar and London Square have a shared vision and approach to creating world-class developments anchored in high-quality design, sustainability, and customer service excellence. Moreover, this transaction represents a new growth phase for both entities. It will provide two-way benefits, positively impacting communities and bringing new opportunities to the customers each company serves.

By combining capabilities and talents, the acquisition paves the way for a new growth phase for both entities. Aldar intends 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’ diverse international customer networks, with Aldar’s development sales during the first nine months of 2023 totalling GBP 4.15 billion (AED 19.4 billion).

London Square and Aldar are complementary, with both entities’ businesses highly compatible on several fronts, including robust governance, corporate culture, development quality and brand reputation. The company’s seasoned management team, well-established industry relationships, and strong commitment to sustainability, customer-centricity and shared values further reinforce the compatibility and synergy with Aldar.

Founded on driving growth, knowledge sharing, strong returns, and market leadership, the acquisition represents a strong vote of confidence in London Square’s expert management team and business model. It also recognises the company’s track record of securing planning consent – leveraging its strong relationship with local authorities – and extensive experience in delivering complex brownfield sites and building homes of the highest quality and design across all tenures.

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 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.” 

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