Abu Dhabi’s Aldar picks CI Capital for sale of majority stake in SODIC

Abu Dhabi’s largest real estate developer, Aldar Properties has chosen CI Capital as financial advisor for its potential acquisition  of a majority stake in Egyptian property developer SODIC, sources with knowledge told local press on Monday.

Baker McKenzie has also been mandated as legal advisor in the potential deal.

Aldar submitted on Sunday a preliminary non-binding offer to buy a minimum of 51 percent of the outstanding share capital of SODIC, with an indicative share price in the range of 18-19 Egyptian pounds ($1.15-$1.22) per share.

The offer values the Egyptian property developer at about 6.6 billion pounds ($420 million).

Aldar said in a bourse filling that the acquisition, if successful, would be implemented through “a consortium controlled and majority owned by Aldar.”

The offer is “a compelling liquidity event and value proposition for SODIC’s shareholders,” Aldar statement read.

Aldar, which mainly operates in Abu Dhabi, has been looking to expand abroad, as home prices and rents in the city have fallen for nearly seven years, with the coronavirus pandemic aggravating the situation.

The deal “gives Aldar entry into a growing real estate market,” said Harshjit Oza, head of research at Abu Dhabi-based International Securities LLC, told Arabian Business.

“The UAE market’s demographics have limitations in terms of population growth, while Egypt is a big real estate market, with young and growing population, which can give Aldar that edge.” Oza added.