A year after Abu Dhabi-based Aldar Development acquired residential developer London Square, the company has said it intends to build a £15bn platform in the next five years.
Since December 2023, London Square has acquired 12 sites with a GDV of £2.3bn, nearing its target of £2.5bn for the first year it has been in business with its parent company.
Adam Lawrence, chief executive of London Square (pictured), and Jonathan Emery, chief executive of Aldar Development, told EG that the business intends to continue this acquisition trajectory for the next five years.
They said the business that focuses on “building homes in London for Londoners” will continue to acquire sites for build-to-rent, for-sale and affordable housing.
London Square’s focus on for-sale has coincided with Aldar’s acquisition. Lawrence said: “The strategy going forward is placing more emphasis on build-to-sell, and into more prime markets than we were present in previously, as that is a sector suitable for London. We were previously not focused on those, but that was more of out of necessity than desire.”
The business’s strategy for the next five years includes developing 7,500 homes, of which 3,000 will be for-sale and the remainder BTR and affordable.
Aldar said it is “actively looking” for forward funding and capital partners for the business’s BTR assets. Emery said: “On the BTR platform there is the opportunity to bring on other investors – partnerships is something we do a lot of. And we are always open to partner with other people who want to invest capital or have more experience or knowledge in the sector than we do.”
London Square is also open to integrating purpose-built student accommodation into its living sector developments, in the case of mixed-use schemes.
On the topic of integrating two businesses 4,000 miles apart, Emery said Aldar takes a “very long-term view as to the investment opportunity in London”.
London Square’s acquisition was the company’s first move out of the UAE. He said: “After some considerable thinking about where we wanted to go, we decided on the UK. We are seeing strong economic ties between the two countries and increasing focus from UAE and global customers on London, as well as from UK customers on Abu Dhabi.
“This is clearly a very stable market, and London remains a globally attractive residential destination.”
Photo © London Square
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