UAE firm buys 75% stake and promises to triple pipeline over next three years.
An Emirati master developer has taken a 75% stake in the London-based residential developer Regal.
Arada, which is based in Dubai, has committed to an initial £500m to acquire and invest into the 150-person business in order to accelerate its delivery over the next two years.
This is the second international acquisition since the firm’s launch in 2017, having expanded into Australia last year.
Over eight years in the UAE, Arada has launched 10 projects. In Australia, it has nine developments including around 5,000 units in the pipeline.
The value of its projects across the country amounts to more than £19bn.
Arada is rate B1 by Moody’s and B+ by Fitch.
Regal, which has operated for more than three decades in the London residential-led mixed-use market, has an existing pipeline of 10,000 units.
Its new owners, who plan to rename the firm Arada London, want to triple the size of this pipeline over the next three years.
The British firm will be renamed Arada London as a result of the acquisition.
His Highness Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada, said: “London is one of the world’s leading cities, and our expansion into this market represents a strategic step for Arada in response to the strong demand for residential space.
“This investment provides a significant opportunity to accelerate the delivery of new residential assets in London, fully aligned with Arada’s long-term strategy to develop high-quality projects that enable people to live healthier and more prosperous lives.”
Jonathan Seal, chief executive of Regal, added: “With nearly 30 years of successful partnerships behind us, Regal has built a reputation for aligning with businesses that share our long-term vision and deep understanding of the real estate industry.
“It is in this spirit that we have carefully chosen Arada as our partner, a business that shares our values and confidence in the London residential market and our management team’s ambition to continue growing market share and shaping the London skyline.”
Ahmed Alkhoshaibi, group chief executive of Arada, said: “We have been impressed by the platform the Regal team has built, as well as the inspirational schemes they are delivering, which reflect our own, long-term focus on experience, amenity and the customer.
”Leveraging Arada’s extensive design and placemaking capabilities, delivery track record and capital resources, we are well placed to support Regal’s evolution and unlock new opportunities for growth.”
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