01 July, 2013

Abu Dhabi, 30 June 2013: The merger between Aldar Properties PJSC (Aldar) and Sorouh Real Estate PJSC (Sorouh) (the Merger) became effective at the close of trade on 27 June (the Effective Date) following the publication of Ministerial Resolution No. (318) of 2013 by the Ministry of Economy (the Ministerial Resolution) which declared the Merger effective and approved the increase in the share capital of Aldar and the amendments to its Articles of Association, the dissolution of Sorouh and the transfer of its assets and liabilities to Aldar from the effective date of such Ministerial Resolution.

3,381,000,000 new Aldar ordinary shares have been issued to those shareholders of Sorouh who appear on the share register of Sorouh immediately after close of trading on the Effective Date. The new number of outstanding Aldar ordinary shares following the capital increase is 7,862,629,603. Sorouh has been dissolved and its assets and liabilities have been transferred to Aldar in accordance with the provisions of Federal Law No. 8 of 1984 concerning Commercial Companies (as amended).

The new Aldar ordinary shares have been listed and admitted to trading on the Abu Dhabi Securities Exchange (ADX). Shareholders will be able to trade their new shares from today.

The Company is pleased to announce that is has successfully negotiated an amendment to the terms and conditions of the loan facility entered into on 28 June 2010 between Sorouh and a syndicate of banks, and which currently has an outstanding balance of AED 2.1 billion. The interest margin on the loan has been reduced from 4.5% to 2.45%, representing a significant and immediate interest cost reduction that clearly demonstrates the synergy benefits of merging the two companies.

Commenting on today's events, H.E. Abubaker Seddiq Al Khouri, the new Chairman of Aldar Properties, said:

"It gives me great pleasure to announce that today marks the first day of business as a combined company. Operating under the name Aldar Properties, the business is one of the biggest real estate developers in the region. The company benefits from a strong balance sheet, a large asset base, a prime land bank for development and an experienced management team. These strengths, combined with our continued close partnership with the Abu Dhabi Government, will allow us to flourish commercially in an economy that is sustainable. I believe that all these strong and exciting fundamentals will deliver significant value to all our stakeholders for years to come."

ABOUT THE COMBINED GROUP

Aldar Properties is one of the largest listed real estate companies in the Middle East and North Africa region, with over AED 46 billion of combined total assets as of March 31 2013, and a market capitalization of approximately AED 16.7 billion based on the closing share prices of both Sorouh Real Estate PJSC and Aldar Properties PJSC at the end of trading on 27 June 2013. The company is the owner of one of the largest land banks in the region (77 million sqm), 90% of which is located in investment zones. The combined company will be the developer of choice in Abu Dhabi, with a strong track record of delivering large-scale projects. The merger has brought an enhanced ability to prioritise and select value adding projects, as well as to monetise the company's land bank and recycle capital into growth opportunities. The Government of Abu Dhabi will be a key customer for Aldar Properties as it continues to deliver strategic assets and various projects for the Government.

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