Tuesday, 02 January 2024 12:17 GMT

UAE Developer Arada Enters UK Market With 75% Stake In Regal


(MENAFN- Khaleej Times)

Sharjah-headquartered developer Arada on Monday announced an acquisition of a 75% stake in the UK's Regal, one of London's leading residential-led mixed-use developers.

This marks Arada's entry into the UK and second international expansion. Having already established a strong presence in the UAE since its launch in 2017 and expanded into Australia in 2024, the acquisition of Regal gives Arada an immediate presence in the London market and platform on which to deliver at speed and scale.

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As part of the transaction, Arada is also committing an initial Dh2.5 billion of capital to acquire and invest in the 150-person-strong Regal business, which will become Arada London. Arada's acquisition of the company, which has a 30-year track record, will accelerate the delivery of Regal's existing 10,000-unit residential pipeline over 11 projects, with an ambition to more than triple this over the next three years.

Sheikh Sultan bin Ahmed bin Sultan Al Qasimi, Chairman of Arada, said:“London is one of the world's leading cities, and our expansion into this market represents a strategic step for Arada in response to the strong demand for residential space. This investment provides a significant opportunity to accelerate the delivery of new residential assets in London, fully aligned with Arada's long-term strategy to develop high-quality projects that enable people to live healthier and more prosperous lives.”

Ahmed Alkhoshaibi, group chief executive officer of Arada, said:“We have been impressed by the platform the Regal team has built, as well as the inspirational schemes they are delivering, which reflect our own, long-term focus on experience, amenity and the customer. Leveraging Arada's extensive design and placemaking capabilities, delivery track record and capital resources, we are well placed to support Regal's evolution and unlock new opportunities for growth.”

Jonathan Seal, chief executive of Regal, added:“With nearly 30 years of successful partnerships behind us, Regal has built a reputation for aligning with businesses that share our long-term vision and deep understanding of the real estate industry. It is in this spirit that we have carefully chosen Arada as our partner, a business that shares our values and confidence in the London residential market and our management team's ambition to continue growing market share and shaping the London skyline.”

Over its eight-year history, Arada has launched 10 successful projects across the UAE, including Aljada, one of the country's largest mixed-use megaprojects, three master plans of the bestselling Masaar forested community and Armani Beach Residences at Palm Jumeirah. In Australia, nine upcoming developments totalling 5,000 units located across New South Wales have positioned the company as one of the country's largest developers, measured by pipeline. The value of Arada's projects across both the UAE and Australia amounts to over Dh95 billion, featuring over 42,000 units, with over 10,000 of those already delivered.

The acquisition presents a number of other benefits, including the bringing together of complementary skill sets and expertise in the development of high quality, amenity-rich residential-led projects, especially given Arada's strong track record in delivering large-scale, complex mixed-use master plans. The transaction is also synergistic, creating opportunities to cross-sell residential products across both businesses' leading sales platforms.

Arada, which is rated B1 by Moody's and B+ by Fitch, brings financial strength and its extensive development experience to the London property market, combined with a long-term vision to create spaces and experiences that enhance communities and transform urban landscapes.

Since its inception, Regal has built over 4,000 residential units, and 1 million sq ft of commercial space underpinned by a fully integrated model that spans the lifecycle of an asset from land assembly, planning, stakeholder engagement and construction, to sales, marketing, customer care and asset management. As part of the transaction, Regal's executive team, as well as the company's founders, will all stay with the business.

Regal's projects under construction include Fulton & Fifth in Wembley, a mixed-use residential-led development comprising 876 homes, 40% of which will be affordable. The scheme is also home to Regal's second Regal Academy, which provides construction skills training and employment pathways to the military community and local people.

Rothschild & Co acted as sole financial and strategic adviser to Regal.

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