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Abu Dhabi: Aldar Properties confirmed on Tuesday it has successfully completed all aspects of its integration significantly ahead of schedule, following the merger with Sorouh in June 2013.
The merger brought together two complementary businesses to create greater value for all shareholders and stakeholders. Key to this was the development of a more diversified and sustainable business model with a balance between revenues derived from development projects and stable recurring revenues from its investment properties and asset management activities, the company stated.
It added that Aldar today has a strong management team that has the experience to take advantage of future growth opportunities. All systems and business processes are completely aligned and all re-branding activity is now complete, it stated.
The company added that its initial per annum synergy estimate of Dh90-110 million by 2015, was derived principally from operational efficiencies and interest savings on acquired debt, “The company is pleased to announce that this estimate has been increased by 45 per cent to Dh145-150 million per annum based on stronger than expected operational synergies and revised lower cost of debt acquired in the acquisition, a significant proportion of which will start to be realised in 2014,” Aldar said in a statement. “The 45 per cent increase in synergy estimates and the ability to complete the merger integration well ahead of schedule reinforces the complementary nature of the two businesses. I am confident that we now have the right team and business processes in place to maximise stakeholder value by creating and managing quality developments,” Abu Bakr Seddiqi Al Khoury, Chairman of Aldar Properties, said in a statement.
Source: Staff Report, gulfnews.com