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Stake in London house builder sold to Dubai-based developer for £230m
A Dubai-based developer owned by Middle Eastern royals has acquired a 75% stake in London house builder Regal for £230m.
Stake in London house builder Regal sold to Dubai-based developer for £230m #ukhousingArada will invest an additional £270m to treble Regal’s pipeline to 30,000 homes over the next three years. The new owners plan to rename Regal, a 150-person business, to Arada London.
Regal has operated for more than three decades in the London residential-led mixed-use market, and its projects have included purpose-built student accommodation (PBSA) and build-to-rent (BTR) schemes. It has built around 4,000 homes and has a further 10,000 homes in the pipeline.
Jonathan Seal, chief executive of Regal, said: “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.”
This transaction marks Arada’s second international acquisition since launching in 2017. It also has nine developments and 5,000 homes in the pipeline in Australia, with a total value of £19bn.
Arada has 10 projects in the United Arab Emirates. It builds homes for all price points including, at the highest end, the luxury homes on the Palm in Dubai, which cost up to £80m.
Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada and a member of the ruling family of Sharjah in the UAE, said: “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.”
Ahmed Alkhoshaibi, group chief executive of Arada, said: “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.”
This latest deal comes after Canadian investor QuadReal Group bought a 6,000-home BTR portfolio to expand its UK assets.
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