Abu Dhabi wealth fund Mubadala Investment Co. sold a $950 million stake in Aldar Properties PJSC, cashing in on a surge in the developer’s shares after it was awarded contracts worth billions of dollars.
Mubadala, the $232 billion sovereign wealth fund, sold a 12% stake in Aldar to Alpha Dhabi Holding, a name little known to investors. Mubadala will remain the largest shareholder in the company, which is the biggest developer in the United Arab Emirates, with a 25% stake.
Aldar’s stock is up 144% over the past year after the company became the developer of choice for Abu Dhabi, which signed off on deals worth $12.3 billion in January. Its shares retreated 0.8% Wednesday, and are up 19% for the quarter.
“Mubadala’s ability to monetize part of the Aldar stake is good news,” said Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital Ltd. “The question is: will this strategic investor be dormant or will he be looking to change things. And in that case the fact Mubadala kept a large stake should be reassurance of continued government support for the developer.”
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