Arada and Alya target $1.63bn property pipeline across UAE and Saudi Arabia

Detailed summary

UAE developer Arada has teamed up with Alya Developments to explore co-investment opportunities in premium property in the Emirates and Saudi Arabia, following the former's entry…

UAE developer Arada has teamed up with Alya Developments to explore co-investment opportunities in premium property in the Emirates and Saudi Arabia, following the former's entry into the kingdom.

Arada's newly established investment management platform, Arada Capital, and Alya signed a preliminary agreement to explore premium developments in the Emirates and Saudi Arabia under a potential Dh6 billion ($1.63 billion) pipeline, they said in a joint statement on Thursday.

The companies will initially pursue two projects in the UAE, with Abu Dhabi's Yas Island and Downtown Dubai earmarked as potential areas, they said in a joint statement on Thursday. It did not provide plans for Saudi Arabia.

Arada Capital, the investment management platform of Arada Group, was announced in July and is aiming for $5 billion in assets under management within four years. Arada Group is jointly owned by Saudi businessman Prince Khaled bin Alwaleed’s KBW Investments and Sharjah-based Basma Group. Alya is backed by Canada's Brookfield, which manages about $1 trillion in assets, and Abu Dhabi-based Lunate, a global investment firm with more than $125 billion in assets.

The move follows last month's launch of Arada's Dh14 billion residential project in Riyadh, as the developer expands into the kingdom.

Arada's group chief executive has separately outlined plans to build 100,000 homes across Saudi Arabia over the next three to five years. Arada also has operations in Australia, Syria and the UK.

“This partnership represents an important milestone in Arada Capital's ambition as a fund manager … we see significant potential to bring forward premium residential projects distinguished by their quality, thoughtful design and disciplined delivery,” said Moustafa Fahour, chief executive and managing director of Arada Capital.

“Our shared ambition is to create homes of enduring quality and value, for the people who live in them and those who invest in them,” added Otto Dreyer, chief executive of Alya.

Proper…

Opening of the article, excerpted from The National. To read the rest, open the article on the publisher's site.