(Bloomberg) -- Aldar Properties PJSC acquired a beach resort for $210 million in the United Arab Emirates, the latest move by the real-estate developer to expand outside its home base of Abu Dhabi.
The company bought the 715-room Rixos Bab Al Bahr beach property in Ras Al Khaimah with additional development rights, according to a statement. The transaction takes Aldar's total investment in Ras Al Khaimah to 1.5 billion dirhams ($408 million). Ras Al Khaimah and Abu Dhabi are among seven emirates that make up the UAE.
Aldar, which primarily operates in Abu Dhabi, has been chasing growth in a cramped market. At home, the developer is growing its management business and beyond the UAE, it's gained a foothold in Egypt through its acquisition of a majority stake in a developer known as Sodic.
Apollo Global Management Inc. in February signed a deal to invest $1.4 billion in Aldar, in what could be one of the largest foreign direct investments in Abu Dhabi's private sector. The company has said it plans to spend 5 billion dirhams on acquisitions this year to grow its portfolio of revenue-generating properties.
The resort purchase is underpinned by the potential of Ras Al Khaimah as a tourist hub as leisure travel returns after the coronavirus pandemic, said Jassem Busaibe, chief executive officer at Aldar Investment.
“In addition to the transaction being value- and yield-accretive to our recurring-income generating portfolio, it allows us to build further scale and enhance diversification,” he said.
Aldar's shares have gained 22% this year compared with a 17% gain for the benchmark Abu Dhabi stock index.
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