|By TAP Staff|Aldar Properties announced it has repaid a US$1.25 billion bond that matured at the end of May 2014 as the company pushes ahead with a strategy to deleverage, reduce its cost of borrowing and build a strong platform for growth.
The bond that matured in May 2014 carried an annual interest cost of 10.75% and it was repaid using cash and by drawing down on committed liquidity facilities that carry an annual interest cost of 1.7%. Aldar has now successfully refinanced or agreed new terms on all its financing facilities since the merger and has achieved significant interest savings. Aldar’s weighted average cost of debt has reduced from 5.8% to 2.8%.
Since completing the merger last year, Aldar Properties has reduced its gross debt from AED 14.2 billion to AED 10.1 billion and following the repayment of the bond continues to maintain a strong cash position of AED 3.8 billion of cash as of 31 May 2014. Aldar is now forging ahead with new developments at a time when demand is growing for high-quality real estate in Abu Dhabi. The company has nearly AED 40.7 billion in assets, including 77 sq. m. of land for development.
Aldar unveiled three new residential developments in April, with the first sales launch – for the Al Hadeel development at Al Bandar on Al Raha Beach – achieving a sell-out in one day. The company said it has experienced strong sales and leasing activity across its property portfolio this year, reflecting a pick-up in the Abu Dhabi market, driven by a sustained period of robust GDP growth as the Emirate continues to diversify its economy.
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