The UAE’s Arada has entered the UK market with a significant acquisition, securing a 75% stake in Regal, one of the top residential and mixed-use developers in the United Kingdom. This move signifies Arada’s strategic ambitions to diversify and expand its geographic footprint while tapping into the robust demand for residential space in London.
Following its successful expansion into Australia last year, Arada is now making its mark in the UK through this acquisition. Established in 2017, the company has quickly risen to prominence within the UAE’s real estate landscape. The acquisition of Regal not only enables Arada to establish a foothold in London but also provides a strong platform for delivering projects efficiently and at scale.
As part of the transaction, Arada is committing an initial investment of AED 2.5 billion (approximately $680 million) to acquire ownership of Regal, a company that boasts a workforce of 150 employees. Moving forward, Regal will be rebranded as Arada London, emphasizing the new partnership’s vision and strategic focus.
Accelerating Project Delivery
With nearly 30 years of experience, Regal possesses a proven track record in the real estate sector, and Arada’s acquisition is poised to expedite the delivery of Regal’s current pipeline, which includes 10,000 residential units across 11 projects. The partnership aims to more than triple this pipeline in the next three years, highlighting the ambitious growth strategy behind Arada’s entry into the UK market.
His Highness Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada and Deputy Ruler of Sharjah, stated, “London is one of the world’s leading cities, and our expansion into this market represents a strategic step for Arada in response to the strong demand for residential space.” He emphasized that this investment aligns with Arada’s long-term strategy to develop high-quality projects that enhance living experiences.
Integration of Vision and Expertise
Ahmed Alkhoshaibi, Group Chief Executive Officer of Arada, expressed enthusiasm about the potential for collaboration: “We have been impressed by the platform the Regal team has built, as well as the inspirational schemes they are delivering, which reflect our own long-term focus on experience, amenity, and the customer.” By leveraging Arada’s extensive capabilities in design and capital resources, the company plans to support Regal’s evolution while unlocking new avenues for growth.
Jonathan Seal, Chief Executive of Regal, mentioned, “With nearly 30 years of successful partnerships behind us, Regal has built a reputation for aligning with businesses that share our long-term vision.” He underscored the strategic alignment between Regal and Arada, noting shared values and confidence in the London residential market.
Future Opportunities in the London Market
Arada has already launched ten successful projects in the UAE, including prominent developments like Aljada and the Armani Beach Residences. Additionally, with a growing presence in Australia, comprising 5,000 units in New South Wales, the company’s total project value across both regions surpasses AED 95 billion ($25.9 billion), featuring over 42,000 units. This underlines the immense potential driving Arada’s entry into the UK market.
Prior to this acquisition, Regal has delivered over 4,000 residential units and 1 million square feet of commercial space. Currently, ongoing projects such as Fulton & Fifth in Wembley exemplify the commitment to high-quality, affordable housing, with 40% of its 876 homes designated as affordable units. The project also includes the second Regal Academy, focused on providing construction skills training to the military and local communities.
Interestingly, Regal’s executive team and founders will remain with the company, ensuring a seamless transition as Arada integrates its strategies and objectives within the UK market. The partnership is set to create a unique synergy that leverages both companies’ strengths in delivering exceptional residential projects.