{"id":23193,"date":"2016-08-17T19:58:00","date_gmt":"2016-08-17T12:58:00","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/aldar-properties-extends-loans-on-strong-interest-only-terms\/"},"modified":"2016-08-17T20:05:28","modified_gmt":"2016-08-17T13:05:28","slug":"aldar-properties-extends-loans-on-strong-interest-only-terms","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/aldar-properties-extends-loans-on-strong-interest-only-terms\/","title":{"rendered":"Aldar Properties extends loans on strong interest-only terms"},"content":{"rendered":"


\nAldar Properties has refinanced Dh1.8 billion of debt as Abu Dhabi’s largest developer seeks to reduce its interest burden. The company said yesterday that it had completed the refinancing for a portfolio of existing bank loans due to mature by 2018 with three banks on interest-only terms for loan lengths of five, seven and 10 years. The developer, which is 29.75 per cent owned by Abu Dhabi government fund Mubadala, said that the deals meant that the average length of its bank loans was now about four years.”Aldar’s ability to secure interest-only bank loans with maturities of up to 10 years at highly competitive commercial terms underlines Aldar’s robust performance, clear strategy and future prospects,” the company said. The news came as ratings agency Standard & Poor’s announced that it had upgraded the group’s long and short-term corporate credit ratings. It said the rating upgrade to BBB\/A-2 with a stable outlook from BBB\/A-3 was on the back of a hike in the company’s recurring revenue income since it opened Abu Dhabi’s largest shopping centre, Yas Mall, a year and a half ago. “Aldar continues to improve its operating performance on the back of steady recurring income from its rental portfolio, which has strengthened our view of its financial and business risk profiles,” S&P said in a note. “At the same time we believe Aldar will focus more on its commercial operations as its public policy role diminishes.” It also said that it would not be raising its rating by two notches as it had done in 2013 based on improvements in Aldar’s balance sheet because it said that the chances of the Abu Dhabi government bailing Aldar out again if it hit financial difficulties had “significantly reduced”.”While we consider Aldar to be a government-related entity, the amount of government projects to be undertaken by Aldar has significantly reduced,” S&P said. “Although we continue to see Aldar as a vehicle for the government with potential for fut\u00adure government transactions, we believe the company’s public policy role has diminished.”According to Aldar’s most recent quarterly results, at the end of June the company had a total of Dh5.9bn worth of debt on its balance sheet. That situation is a far cry from the dark days following the global financial crisis when the company overextended itself and total debts mushroomed to Dh38.6bn at the end of 2009 and the company looked in danger of going bust. In those years the company was forced to pay sky-high interest rates of as much as 10.75 per cent on some of its bonds. But in the seven years since the crisis, Aldar has worked hard to rebuild its balance sheet with three large asset sales to the Abu Dhabi government and a mer\u00adger with rival Abu Dhabi property developer Sorouh. The company has also built up a rental portfolio of shops, flats and offices, including Yas Mall, in an attempt to reduce its exposure to the peaks and troughs of the capital’s volatile property market.”This ratings action is another acknowledgement of our financial strength and the success we have enjoyed in building a mature and sustainable business,” said Mohamed Khalifa Al Mubarak, Aldar’s chief executive. Earlier this month, Aldar reported that second-quarter net profit rose by about 10 per cent to Dh657.3 million despite a slowdown in the Abu Dhabi property market. Aldar shares fell by 1.04 per cent in trading yesterday to close at Dh2.85.lbarnard@thenational.ae
\n
\nSource : thenational.ae
\nRead more…Aldar Properties extends loans on strong interest-only terms<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Aldar Properties has refinanced Dh1.8 billion of debt as Abu Dhabi’s largest developer seeks to...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-23193","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-625","jetpack-related-posts":[{"id":12514,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabis-aldar-properties-q1-net-profit-gains-15-per-cent\/","url_meta":{"origin":23193,"position":0},"title":"Abu Dhabi's Aldar Properties Q1 net profit gains 15 per cent","date":"May 10, 2016","format":false,"excerpt":"\r Aldar Properties reported a 15 per cent year-on-year increase in net profit for the first quarter of 2016 to Dh654 million.The Abu Dhabi-based developer attributed the increase to a growth in its recurring revenue, which increased by 10 per cent to Dh403m, which was largely due to the fact\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54159,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-developer-aldars-net-profit-in-neutral\/","url_meta":{"origin":23193,"position":1},"title":"Abu Dhabi developer Aldar's net profit in neutral","date":"May 9, 2017","format":false,"excerpt":"\r First quarter net profits at Abu Dhabi's largest listed developer, Aldar Properties, remained flat compared with a year earlier as a drop in government income was offset by property and land sales.In a statement to the Abu Dhabi bourse this morning Aldar said that profit attributable to shareholders stood\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54209,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/land-and-property-sales-keep-aldar-profit-ahead-of-forecast\/","url_meta":{"origin":23193,"position":2},"title":"Land and property sales keep Aldar profit ahead of forecast","date":"May 9, 2017","format":false,"excerpt":"\r The Abu Dhabi developer Aldar Properties compensated for a drop in government income in the first quarter of this year by boosting property and land sales. In a statement to the Abu Dhabi bourse on Tuesday, Aldar said that profit attributable to shareholders stood at Dh636 million in the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":48854,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-developer-aldar-sets-sights-on-yas-and-reem-projects\/","url_meta":{"origin":23193,"position":3},"title":"Abu Dhabi developer Aldar sets sights on Yas and Reem projects","date":"March 21, 2017","format":false,"excerpt":"\r Aldar Properties expects to invest Dh1.9 billion in developing four new projects on Reem Island and Yas Island in Abu Dhabi as part of the company's plans to boost its recurring revenue. Abu Dhabi's largest listed property developer said on Monday in a statement it plans to build a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54153,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/aldars-net-profit-in-neutral\/","url_meta":{"origin":23193,"position":4},"title":"Aldar's net profit in neutral","date":"May 9, 2017","format":false,"excerpt":"\r First quarter net profits at Abu Dhabi's largest listed developer, Aldar Properties, remained flat compared with a year earlier as a drop in government income was offset by property and land sales.In a statement to the Abu Dhabi bourse this morning Aldar said that profit attributable to shareholders stood\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":52189,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/aldar-plans-1-million-square-foot-park-on-reem-island\/","url_meta":{"origin":23193,"position":5},"title":"Aldar plans 1 million square foot park on Reem Island","date":"April 18, 2017","format":false,"excerpt":"\r Aldar Properties plans to develop a Dh250 million, 1,000,000 square foot public park on Reem Island. The park will be completed in 2018.Abu Dhabi's largest listed property developer said on Tuesday that the multi-tiered park will include a 4-kilometre promenade, a 2,000-worshipper capacity mosque, food and beverage outlets, a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/23193"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=23193"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/23193\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=23193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=23193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=23193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}