Abu Dhabi picks Goldman, others for state-backed real estate merger
Source: BI-ME with Reuters , Author: Posted by BI-ME staff
Posted: Mon May 21, 2012 9:27 pm

UAE. Abu Dhabi has picked four banks as financial advisors for the potential state-backed merger of property developers Aldar Properties ALDR.AD and Sorouh Real Estate SOR.AD, three sources aware of the matter said on Monday.

The oil-rich emirate has hired Goldman Sachs (GS.N) and National Bank of Abu Dhabi NBAD.AD to advise a steering committee that will oversee the potential merger, one of the sources familiar with the matter said.

Morgan Stanley (MS.N) and Credit Suisse (CSGN.VX) are advising the companies, the three banking and industry sources said speaking on condition of anonymity as the matter has not been made public.

Spokesmen for Aldar and Sorouh declined to comment when contacted by Reuters.

Abu Dhabi is contemplating merging indebted Aldar with Sorouh in a tie-up that could create a company worth some US$15 billion in assets.

Analysts say the deal, outlined in March, is aimed at shoring up the balance sheet of Abu Dhabi sovereign wealth fund Mubadala MUDEV.UL, which has a big stake in struggling Aldar, and stabilizing the emirate's brittle real estate market.

A tie-up is seen as complicated, however, given the massive land banks the two companies hold and the work involved in arriving at a deal structure.

Aldar has relied heavily on the government over the past 18 months for funding. Abu Dhabi has spent more than $10 billion on the company, equivalent to the amount it deployed to rescue Dubai from a bond default in 2009.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: September 2, 2014
UAE. The top ten most influential brands headquartered in the UAE based on engagement among LinkedIn's membership of 313 million professionals; Leading UAE airlines are the top two brands, Etihad Airways tops ranking.
date:Posted: September 2, 2014
INTERNATIONAL. U.S. strategic conception must evolve away from seeing these conflicts as distinct theaters into seeing them as different aspects of the same theater: the Black Sea.
date:Posted: September 1, 2014
UAE. The Middle East's top brands have grown by an average of 38%, according to The Brand Finance Middle East 50; This brings the total value of the top 50 above US$50 billion for the first time; Emirates holds the top spot and remains far ahead of the rest.
UAE. The top ten most influential brands headquartered in the UAE based on engagement among LinkedIn's membership of 313 million professionals; Leading UAE airlines are the top two brands, Etihad Airways tops ranking.
dhgate