Arada Expands into the UK with Regal Acquisition

Introduction to Arada’s Growth Strategy

In a significant move to broaden its international footprint, UAE-based real estate firm Arada has acquired a 75% stake in Regal, a prominent developer in the United Kingdom known for its residential and mixed-use projects. This acquisition follows Arada’s recent expansion into Australia, marking a strategic step in the company’s mission to diversify its operations globally.

Establishing a Presence in London

Founded in 2017, Arada has quickly established itself as a key player in the UAE real estate market. The acquisition of Regal not only provides Arada with an immediate foothold in London but also a robust platform to execute projects efficiently and at scale. As part of this transaction, Arada is committing an initial investment of AED 2.5 billion (approximately $680 million) to enhance Regal’s operations, which will be rebranded as Arada London.

Regal’s Proven Track Record

Regal boasts a solid 30-year history in the real estate sector, and this partnership is expected to expedite the delivery of its existing pipeline of 10,000 residential units across 11 projects. Arada aims to significantly increase this number, targeting a tripling of units over the next three years. This ambitious growth plan aligns with the rising demand for residential spaces in one of the world’s most dynamic cities.

Leadership Insights

His Highness Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada and Deputy Ruler of Sharjah, emphasized the strategic importance of this expansion. He noted, “London is one of the world’s leading cities, and our entry into this market is a response to the strong demand for residential space.” His vision for Arada includes delivering high-quality projects that contribute to healthier and more prosperous living conditions.

Ahmed Alkhoshaibi, Group CEO of Arada, expressed admiration for Regal’s established platform and the innovative projects it has undertaken. He stated, “We are well placed to support Regal’s evolution and unlock new opportunities for growth,” highlighting Arada’s commitment to enhancing the customer experience through design and placemaking.

Regal’s Vision and Future Plans

Jonathan Seal, CEO of Regal, shared his enthusiasm for the partnership, stating that Regal has a history of aligning with businesses that share its long-term vision. He expressed confidence in Arada’s capabilities and their shared ambition to expand in the London residential market. This collaboration aims to shape the skyline of London while continuing to grow Regal’s market share.

Arada’s Project Portfolio

Arada has successfully launched ten major projects in the UAE, including Aljada, one of the largest mixed-use developments in the country, and the popular Masaar community. In Australia, the company has introduced nine new developments totaling 5,000 units, solidifying its position as one of the largest developers in the region. The total value of Arada’s projects across the UAE and Australia exceeds AED 95 billion ($25.9 billion), encompassing over 42,000 units, with more than 10,000 already delivered.

Financial Strength and Development Expertise

With a B1 rating from Moody’s and a B+ from Fitch, Arada brings considerable financial strength and extensive development experience to the London property market. The acquisition of Regal not only enhances Arada’s portfolio but also combines complementary skills in creating high-quality, amenity-rich residential projects. This synergy is particularly valuable given Arada’s proven track record in delivering large-scale, complex mixed-use developments.

Regal’s Ongoing Projects and Community Impact

Since its inception, Regal has successfully developed over 4,000 residential units and 1 million square feet of commercial space. Current projects include Fulton & Fifth in Wembley, a mixed-use development featuring 876 homes, with 40% designated as affordable housing. This initiative also includes the second Regal Academy, which focuses on providing construction skills training and job opportunities for the military community and local residents.

Conclusion

As part of the acquisition, Regal’s executive team and founders will remain with the company, ensuring continuity and leveraging their expertise as they embark on this new chapter under Arada’s leadership. This partnership not only signifies a major milestone for Arada but also promises to contribute positively to the London real estate landscape.