How Aldar Properties’ £230 Million Acquisition of London Square Fuels Ambitious Growth and Affordable Housing in the UK
In December 2023, Aldar Properties, a leading real estate developer based in Abu Dhabi, took a monumental step into the UK market by acquiring London Square, a renowned residential developer, for £230 million. This strategic acquisition marked Aldar’s first venture outside the Middle East and North Africa (MENA) region and aligned with its goal to diversify income streams and enter mature global markets.
Since the acquisition, London Square has accelerated its growth trajectory, securing 15 major development sites across ten London boroughs within just 18 months. These projects collectively span approximately 3 million square feet of real estate, with ten sites already under construction. Some standout projects include Wimbledon Bridge House, a mixed-use redevelopment in the heart of Wimbledon, featuring office and retail spaces. Aldar and London Square are engaging with Merton Council to enhance this central area for businesses and residents. Another key development is the Leegate Shopping Centre in Lewisham, where plans include 562 homes, of which 173 are affordable, alongside 4,538 square meters of commercial space. Additionally, Ransome’s Wharf, a prime 1.6-acre site near the Thames, was acquired for £69 million and is set to offer 118 homes, including 24 affordable units, and over 19,000 square feet of commercial space.
Under Aldar’s stewardship, London Square’s development pipeline has doubled in value, reaching nearly £4 billion, with a target to deliver over 7,000 homes in the next five years. Impressively, 38% of these homes are designated as affordable housing, addressing the city’s chronic housing shortage. To support this ambitious growth, Aldar has provided £205 million to refinance existing debt and secured a £250 million loan facility from First Abu Dhabi Bank, Standard Chartered Bank, and Mashreqbank.
Talal Al Dhiyebi, CEO of Aldar, emphasized the strategic importance of this acquisition. He pointed out the shared values between Aldar and London Square and highlighted the potential for accelerated growth. The move is driven by Aldar’s desire to diversify income sources and play a key role in addressing London’s housing needs.
This expansion underscores Aldar’s long-term commitment to the UK, leveraging its expertise to contribute meaningfully to London’s housing landscape. It also represents a pivotal moment in cross-border real estate investment, showcasing how Gulf-based developers are positioning themselves in global markets.
