Abu Dhabi's Aldar eyes rentals, smaller projects post-merger | Reuters

Abu Dhabi's Aldar eyes rentals, smaller projects post-merger | Reuters:

"Aldar Properties ALDR.AD, Abu Dhabi's biggest real estate developer, will focus on rental income and smaller projects instead of large developments in order to avoid the risk of becoming overstretched again, a senior executive said.

Majority state-owned Aldar piled on debt after being tasked with building trophy assets for the Abu Dhabi government, including a Formula One circuit, the Yas Island entertainment district and lavish waterfront developments.

Then the company and other developers were hit hard when a property bubble burst in 2008-2010, pushing real estate prices down by more than 50 percent. The government stepped in with a $10 billion rescue for Aldar and last year moved to merge Aldar with smaller rival Sorouh Real Estate to create a business with $13 billion of assets."

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