Aldar to decide on sale of assets at board meeting

Abu Dhabi's largest real estate developer by market capitalisation, Aldar Properties, said yesterday its board will meet tomorrow to consider the sale of some assets of the company. "Aldar Properties will be holding a meeting of its board of directors at 2.30pm on December 28 to consider the sale by the company of certain of its assets, in addition to discussing operational matters relating to the company and its projects," said Aldar in a mandatory filing to the Abu Dhabi Securities Exchange, where its shares are listed. Real estate stocks on the Abu Dhabi market reacted negatively to the news, with Aldar's shares falling 2.35 per cent yesterday to close at Dh0.82. The Abu Dhabi Securities Exchange general index, however, closed fractionally higher at 2,352.37. "The market's index could easily lose 50 points over the next two trading sessions… until the time the picture becomes clearer over the size of Aldar's asset sales and who they plan to sell their assets to," a market participant told Gulf News by telephone. Last week, Aldar denied reports that it was planning to delist from the Abu Dhabi Stock Exchange. On October 31, Aldar said changing market conditions had provoked the layoff of 24 per cent of its workforce. In January, the developer agreed to sell real estate assets including the Ferrari theme park and convertible bonds to the government for Dh19.2 billion to reduce its debt. Aldar reported its biggest quarterly loss last year after the global credit crisis drove down Abu Dhabi property prices by more than a third from their 2008 peak. The company reported a profit of Dh144 million for the quarter ended September 30, compared with a net loss of Dh731.2 million in the same period a year ago. Aldar's portfolio of projects in Abu Dhabi is valued at more than $75 billion (Dh275.40 billion) with the entire portfolio slated to be completed and delivered within this decade. Aldar Properties' Chief Executive Officer Sami Assad recently said Aldar is working towards completing projects at its Al Raha Beach development and on the Yas Mall on Yas Island where the work will be completed in 2013. The Yas Island water park project is due for completion in 2012, he added.