The merger between Aldar Properties and Sorouh Real Estate is one which seems to have paid off. The deal has created the third-biggest quoted property developer in the Middle East, with a market capitalisation of $8.3bn. Forecasts for annual synergies of $24.5mn-$30mn have been upgraded to $39.5mn-$40.8mn as the enlarged group has paid down debts and been able to raise funds more cheaply.
The merger also brought together two skilled management teams. Chief development officer Gurjit Singh, like chairman Abubaker Seddiq Al Khouri, came from Sorouh.
Singh has been charged with responsibility for delivering its next wave of projects. This began in April with the launch of three schemes worth a combined $1.36bn (AED5bn) – Ansam (at Yas Island), Al Hadeel (at Al Raha) and Nareel Island.
These are all set to be delivered by March 2017, and Singh said these are the first of 23 new projects identified by Aldar Properties for bringing forward over the next five to eight years. These were chosen from its 77mn m2 land bank based on their “obvious” demand, Singh said.
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