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UAE-based real estate developer Arada has acquired a 75% stake in British property developer Regal in a deal worth AED 2.5 billion. The move, which follows Arada's expansion into Australia last year, marks its second international venture. Regal will be renamed Arada London, with the company committing to triple its UK pipeline of 10,000 homes across 11 projects within three years. Executives said the London market offers long-term opportunity despite current challenges, joining other UAE developers expanding into the UK. Arada is also eyeing Saudi Arabia as its next market.
United Arab Emirates developer Arada has taken a 75% stake in UK property company Regal, making it the company's second international expansion after entering the Australian market last year. The acquisition, valued at AED 2.5 billion (USD 680.7 million), gives Arada control of Regal's pipeline of about 10,000 homes spread across 11 projects. The business will now operate under the name Arada London. Advertisement
Arada Chairman Sheikh Sultan bin Ahmed Al Qasimi described London as one of the world's leading cities and said entering this market was a strategic move to meet strong demand for residential space.
According to Arada Group CEO Ahmed Alkhoshaibi, more than half of the financial commitment will go towards tripling Regal's pipeline in the UK within the next three years. He explained that the company intends to take an assertive approach, adding that the London property sector is currently facing difficult conditions but offers scope for financial returns before prices rise again.
Alkhoshaibi also pointed out that the London residential market is complex, and that entering through acquisition helps avoid delays and difficulties faced by outsiders, even those with significant capital.
The move comes as Gulf property developers continue to diversify overseas, supported by strong demand and rising investment in their home markets. Companies such as Damac, Aldar, and Modon have also established development arms in the UK, either independently or through joint ventures.
Arada, founded in 2017 by Sheikh Sultan bin Ahmed Al Qasimi and Prince Khaled bin Alwaleed bin Talal Al Saud, has a portfolio across the UAE and Australia valued at more than AED 95 billion. Looking ahead, the developer is also planning to expand into Saudi Arabia, a step Alkhoshaibi said could materialize by the middle of next year.
Source Reuters
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