Aldar eyes investments in UK property companies

United Arab Emirates property company Aldar is examining the possibility of investing in some of the UK's largest quoted real estate developers, according to a recent report in The Times. According to the newspaper, the Abu Dhabi-based Aldar is eyeing developers like Hammerson, Land Securities and British Land, with analysts citing Hammerson as the most likely fit for the company.

'We are watching the markets very closely to see what to acquire,' Aldar chief executive Ron Barrott told The Times. 'We are looking at companies which are listed in markets where we believe there is good potential and make good commercial sense. It rules the UK in.'

Aldar's increased scrutiny of UK property companies comes as share prices of listed property companies have resumed a downward trend in recent weeks amid growing concerns about the short-term prospects for office and retail rents and the outlook for the UK economy as a whole. 'The UK is a very mature market - the most mature market in the world,' Barrott told the newspaper. 'The return may not be high but the risk profile is better. Last year values were over the top, driven by highly leveraged investments which drove down yields artificially. Now yields are coming back to where they should naturally fall.'

Aldar owns property assets valued at about £6bn (EUR 7.5bn) in the United Arab Emirates, North Africa, the Middle East and Singapore.