Aldar Properties PJSC is looking into buying assets that would boost its management units as the largest listed developer in the United Arab Emirates aims to take advantage of strains in the market.
“Times of crisis and dislocation always give rise to opportunities for corporate action or combination,” Chief Financial Officer Greg Fewer said on a conference call Thursday. “When you’re a landlord, the cost of capital is one of your most important attributes. We have the lowest cost of capital.”
UAE developers often suffer from slumping demand for properties when oil prices are low and job creation lags. Growing their asset management businesses helps secure a steady stream of income at times of market downturn.
Aldar, which primarily operates in Abu Dhabi, has the benefit of a stronger market in the UAE capital compared with neighboring emirates. Oversupply in Abu Dhabi is less severe than in Dubai, where a six-year slump has driven values lower by 30%.
Last month, a rally in Aldar shares on the back of a deal with a state-owned entity in Abu Dhabi took its market value past Burj Khalifa developer Emaar Properties PJSC.
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