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A real estate company founded by a Saudi Arabian prince and an Emirati royal has agreed to invest $680mn in a London property developer, as Gulf investors expand overseas to deploy proceeds from a boom in their home markets.
United Arab Emirates-based Arada said on Monday it had agreed to buy a 75 per cent stake in Regal Holdco, a holding company for London developer Regal, which has a pipeline of 10,000 homes, and is also known for student and senior living accommodation.
Arada is owned by Sheikh Sultan bin Ahmed Al Qasimi, deputy ruler of the Sharjah emirate, and Prince Khaled bin Alwaleed bin Talal, son of a billionaire Saudi Arabian investor. A UK-based private family office is selling the 75 per cent stake, said Regal’s chief executive Jonathan Seal.
The coffers of Middle East developers have been boosted by a nearly five-year property boom in the commercial hub Dubai. The boss of Dubai state-backed developer Emaar this month told the Financial Times that it was considering an overseas expansion due to its strong financial position.
Having expanded into Australia last year, eight-year-old Arada is now moving into the UK, which has long been a popular destination for Gulf-based real estate investors. Regal will be renamed Arada London, with its executive team and founders remaining in the business.
“London is one of the world’s leading cities,” said Sheikh Sultan bin Ahmed Al Qasimi, adding that the acquisition was “a strategic step for Arada in response to the strong demand for residential space”. Arada aims to triple Regal’s existing residential pipeline over the next three years.
“The confidence of course is in Regal, but it’s in London itself,” Ahmed Alkhoshaibi, Arada’s group chief executive, told the Financial Times. “London is a strategic market . . . a resilient market and there is a strong connection between London and UAE.”
He added that Arada was “doubling down” on its UAE investments and was confident that there was “a good couple of years at least before we see softening” in the UAE property market.
Rating agencies have said they expect Dubai prices to decline as a glut of new homes hits the market.
The investment in Regal comes as the UK government seeks to meet an election pledge by Labour to build 1.5mn new homes within five years of coming into office, though that has been put in doubt by rising construction costs and sluggish demand.
Seal said there were signs that the UK market was starting to “move in a more positive direction, and we’re hoping to really take advantage of that”.
Regal’s accounts for 2024 showed that it had debts due within one year of £252mn. The London-focused developer reported £196mn worth of investment property at the end of March last year and has additional offices in Hong Kong, Shanghai and Abu Dhabi.
