Apollo’s $1.4 billion investment in Aldar reinforces PE’s focus on real estate

Apollo Global Management has invested $1.4 billion in Abu Dhabi-based Aldar Properties as private equity continues to bet big on the property sector.

The agreement is broken down into four distinct parts:

  • A $500 million investment in a land joint venture
  • A $500 million investment of perpetual subordinated notes issued by Aldar Investment Properties
  • A $300 million mandatory convertible preferred stock investment in Aldar Investment Properties
  • A $100 million common equity investment in Aldar Investment Properties

The transaction, which will see Apollo acquire a minority stake in Aldar Investment Properties, comes as private equity firms continue to earn high returns on their property investments.

Earlier this month, KKR reported that real estate was his biggest participation after private equity, the company made $4 billion in new investments through its real estate platform last quarter.

Also this month, The Carlyle Group released its property investments vastly outperformed its private equity investments in the fourth quarter, with returns of 11% and 6%, respectively. And in January, Blackstone reported its real estate investments climbed 19.2%, while its private equity investments rose 4.8%.

In terms of deal size, Apollo’s investment in Aldar ranks among the largest UAE PE buyouts in recent memory. Here’s a look at several notable deals in the country since the start of 2021:

Related reading: PE Earnings Dashboard: KKR, Apollo, Blackstone, and Carlyle

Image selected by Igor Shaposhnikov

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