FINANCIAL NEWS

UAE’s Aldar looks to lower USD3.8b by half

10 Aug 2013

(MENAFN) Abu Dhabi developer Aldar Properties unveiled plans to lower its USD3.8 billion debt by more than half in coming years as business recovers, Reuters reported.

Chief financial officer Greg Fewer said revenue would start to improve in the third quarter as Aldar reaps the benefits of margining with rival Sorouh, and would grow further by year-end when it begins delivering more than 7,000 units.

He said recurring income, which comes mainly from malls and hotels, would grow from the third quarter when Sorouh’s recurring revenue is integrated with Aldar’s.

The firm looks to repay the debt through receivables from its government projects and recurring income businesses.

Fewer said Aldar was seeking to refinance its debt, including a USD1.2 billion bond maturing next year.

The bulk of Aldar’s debt matures next year and two of those notes will be carried beyond 2014.

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