In its press release on 2009 performance, Aldar noted it had sold some infrastructure and land assets on Yas Island. Apparently, as the sale was for only a small amount no further details were felt necessary.
A week later when it released its 2009 financial report, Aldar noted the sale had been to the Government of Abu Dhabi for AED9.138 billion (US$2.49 billion). At that point Aldar did not provide any discussion of the profit on the transaction. Either they spell الشفافية with a capital ش in Abu Dhabi. Or the company and the Government were still figuring how to structure the sale.
Today Aldar responded to a letter from the Abu Dhabi Stock Exchange to advise that the sale had been at cost.
Clearly, the Government of Abu Dhabi is bailing out Aldar - either with some additional cash or loan forgiveness. It appears we'll have to wait for the release of Aldar's 1Q10 financials or the ADX to send another letter to the company to learn how the bailout was structured.
Yas Island website here.
Clearly, the Government of Abu Dhabi is bailing out Aldar - either with some additional cash or loan forgiveness. It appears we'll have to wait for the release of Aldar's 1Q10 financials or the ADX to send another letter to the company to learn how the bailout was structured.
Yas Island website here.
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1 comment:
"The prodigal son returns" - I would headline that. Aldar without Abu Dhabi's government was nothing and would never have been anything and won't ever be anything. As their adventure comes to an embarrassing end they run home to Mommy...
It is little wonder that property development in the UAE is a laughing stock in the eyes of the rest of the industry. It's just not the same game when you get land for free. Third grade developers, first grade buffoons.
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