A consortium of Aldar Properties, one of the UAE’s largest real estate groups, and ADQ, Abu Dhabi’s largest holding company, has reached an agreement with Sixth of October for Development and Investment Company (SODIC), an Egyptian property development firm, to acquire the company’s majority stake in a transaction valued $387 million.
The Abu Dhabi-based consortium, of which 70 percent is controlled by Aldar and 30 percent by ADQ, will acquire approximately 85.52 percent of the outstanding share capital of SODIC.
The deal values SODIC at $450 million at a purchase price of $4.46 per share. The transaction will be finalized in the coming days, with shares transferred by December 16.
SODIC, which has its headquarters in Cairo and is listed on the Egyptian Exchange, is one of Egypt’s leading property companies, with residential, commercial and retail projects.
“The transaction provides SODIC’s shareholders with immediate and substantial cash value reflecting the company’s solid financial position and strong brand equity. The Aldar-ADQ consortium brings financial strength, a solid track record in institutional real estate investment, development of premium quality communities and destinations, and property management.”
“Aldar has identified Egypt as a priority market for international expansion, driven by a strong belief in the country’s potential and the macroeconomic fundamentals driving the real estate sector. After studying the market, SODIC emerged as our desired entry partner and is a natural commercial fit for Aldar,” said Mr. Talal Al Dhiyebi, group chief executive of Aldar.
The consortium will focus on identifying the growth opportunities and will guide the company’s long-term strategy. It plans to expand SODIC’s portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets.
The deal comes as Aldar seeks to expand its presence in the Arab world’s most populous nation’s property market. Through the acquisition, Aldar will have access to the attractive Egyptian real estate market where the developer is assessing several opportunities.
In late 2019, ADQ had launched a $20 billion joint strategic platform with the Sovereign Fund of Egypt to invest in several key sectors such as healthcare and pharma, utilities, food and agriculture, real estate and financial services. This transaction is the company’s latest investment in Egypt.