ABU DHABI (Reuters) -Arada, a United Arab Emirates-based real estate developer, said on Monday that it had acquired a 75% stake in British developer Regal, marking its second international foray after Australia last year.
Arada has committed an initial 2.5 billion dirhams ($680.70 million) to acquire privately held Regal, which has a 10,000-unit pipeline over 11 projects, the UAE developer said in a statement, adding that the UK company would be renamed Arada London.
“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,” Arada Chairman Sheikh Sultan bin Ahmed Al Qasimi said.
The company plans to triple the existing UK pipeline over the next three years.
Gulf property developers have registered strong growth, driven by rising demand and increased investment as regional oil and gas producers accelerate economic diversification strategies.
Several other UAE developers, including Damac, Aldar and Modon, have also launched development arms for building properties in the UK through subsidiaries or joint ventures as a way to diversify operations.
Arada, established in 2017 by Al Qasimi, a member of Sharjah’s ruling family, and Prince Khaled bin Alwaleed bin Talal Al Saud, the son of Saudi billionaire Prince Alwaleed Bin Talal, has projects across the UAE and Australia valued at more than 95 billion dirhams, according to the company.
($1 = 3.6727 UAE dirham)
(Reporting by Rachna Uppal; Editing by Rashmi Aich)
