Following their expansion into Australia last year, UAE real estate company Arada has now acquired a 75 per cent stake in the Regal, one of the United Kingdom’s leading residential and mixed-use developers.
Established in 2017 and already one of the leading players in the domestic UAE market, Arada’s entry into the UK aligns with its strategy of growing and diversifying its business geographically. The Regal acquisition gives the company an immediate presence in the London market and a platform on which to deliver at speed and scale.
As part of the transaction, Arada is also committing an initial AED2.5 billion ($680 million) of capital to acquire and invest in the 150-person-strong Regal business, which will be re-branded Arada London.
UAE’s Arada enters UK market
Regal has a 30-year track record, and the acquisition by Arada will accelerate the delivery of its existing 10,000-unit residential pipeline over 11 projects. The company aims to more than triple this over the next three years.
His Highness Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada and Deputy Ruler of Sharjah, witnessed the signing of the transaction and commented: “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.”
Ahmed Alkhoshaibi, Group Chief Executive Officer of Arada, added: “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.”
Jonathan Seal, Chief Executive of Regal, said: “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.”
Arada has launched 10 successful projects across the UAE, including Aljada, one of the country’s largest mixed-use megaprojects, three master plans of the bestselling Masaar forested community and Armani Beach Residences at Palm Jumeirah. In Australia’s New South Wales, nine new developments total 5,000 units have positioned the company as one of the country’s largest developers, measured by pipeline.
The value of Arada’s projects across both the UAE and Australia amounts to over AED95 billion ($25.9 billion), featuring over 42,000 units, with over 10,000 of those already delivered.
Arada, which is rated B1 by Moody’s and B+ by Fitch, brings financial strength and its extensive development experience to the London property market, combined with a long-term vision to create spaces and experiences that enhance communities and transform urban landscapes.
The acquisition presents a number of other benefits, including the bringing together of complementary skill sets and expertise in the development of high-quality, amenity-rich residential-led projects, especially given Arada’s strong track record in delivering large-scale, complex mixed-use master plans.
Since its inception, Regal has built over 4,000 residential units, and 1 million sq ft of commercial space. Some of it projects under construction include Fulton & Fifth in Wembley, a mixed-use residential-led development comprising 876 homes, 40 per cent of which will be affordable. The scheme is also home to the second Regal Academy, which provides construction skills training and employment pathways to the military community and local people.
As part of the transaction, Regal’s executive team, as well as the company’s founders, will all stay with the business.
