In a landmark financial maneuver, Abu Dhabi’s premier real estate developer, Aldar Properties, has successfully executed a $1 billion private placement of subordinated hybrid notes with global asset management titan Apollo Global Management. This strategic transaction, finalized on February 20, 2026, now stands as the single largest corporate hybrid private placement ever recorded within the region.
The sophisticated capital restructuring initiative involves the issuance of notes at the parent company level. The net proceeds are subsequently being channeled as an equity infusion into Aldar Investment Properties (AIP), the entity responsible for managing Aldar’s portfolio of income-generating real estate assets. A significant component of this arrangement includes the full repayment of $500 million in perpetual subordinated notes previously held by Apollo in AIP, which originated from the asset manager’s initial $1.4 billion investment into Aldar back in 2022.
This latest financial injection elevates the total capital commitment from Apollo-managed affiliates, funds, and clients to approximately $2.9 billion over a four-year period, significantly deepening the strategic partnership between the two firms. The transaction is meticulously designed to fortify the capital structures of both Aldar and AIP, providing enhanced balance sheet resilience and bolstering the company’s capacity to pursue its ambitious growth agenda. Consequently, Aldar’s ownership stake in its lucrative AIP subsidiary has increased to a commanding 90%, with Apollo retaining a 10% share.
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, emphasized the strategic value of the deal, stating it provides ‘long-term, flexible capital’ that empowers the company to capitalize on compelling market opportunities. He further highlighted that the move amplifies Aldar’s share of stable, recurring income derived from AIP’s high-quality and diversified portfolio, which is poised for further expansion through acquisitions and a substantial develop-to-hold pipeline valued at nearly $5 billion.
Echoing the sentiment, Jamshid Ehsani, a Partner at Apollo, commended the transaction as a testament to Apollo’s expertise in structuring adaptable capital solutions that align with the objectives of corporate clients and investors alike. He praised Aldar’s ‘robust performance and portfolio expansion’ under experienced management and reaffirmed Apollo’s sustained commitment to the Abu Dhabi market and the broader Middle East region. The hybrid notes feature a long-term structure with an extended non-call period of 10.25 years, mirroring the terms of a recent public issuance by Aldar.