For-profit to retain ‘independent board’ after parent firm acquired by UAE property giant
For-profit Square Roots will continue to have an “independent board” after its parent London Square was acquired by an Abu Dhabi-based real estate firm for £230m, Social Housing has been told.
Aldar Properties is based in Abu Dhabi (picture: Alamy)
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Aldar Properties announced earlier this month it had taken a 100 per cent stake in London Square after striking a deal with its owners, the investment firm Ares Management.
It is Aldar’s first acquisition outside of the Middle East and North Africa (MENA) region.
Talal Al Dhiyebi, chief executive of Aldar Properties, said the deal was part of a move to acquire established firms in its “target markets”.
London Square’s operations include Square Roots, a for-profit registered provider which it launched in 2021 and registered with the regulator in June last year.
Following the deal with Aldar, an emailed statement from London Square said: “Square Roots continues as a wholly-owned subsidiary of London Square, with an independent board as a registered affordable provider, and its position remains unchanged.”
The current chair of Square Roots is Simon Dudley, the former chair of Homes England.
Adam Lawrence, founder and chief executive at London Square, and Scott Brown, the developer’s chief financial officer, are also listed as non-executive board members of Square Roots.
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Last year, Square Roots’ managing director, Barbara Richardson, told Social Housing the for-profit was initially focused on acquiring shared ownership properties and was aiming to have between 5,000 and 10,000 homes in the long term.
She said the firm would maintain an arm’s-length relationship with London Square, but with the latter acting as its developer.
Mr Lawrence said: “Becoming part of Aldar is the beginning of an exciting new chapter for the future of London Square.”
He added: “We look forward to playing a leading role in tackling the housing shortage by providing more much-needed homes in the capital and surrounding areas where there is a continuing lack of supply.”
The statement from London Square said Mr Lawrence’s role will be “unaffected” by the takeover.
Four executives of Aldar, including Mr Al Dhiyebi, are overseeing the governance of London Square, according to the firm’s website.
The London Square statement said: “As a result of the acquisition of London Square by Aldar Properties, a transition in the holding company is taking place, with the change of owner from Ares Management and its representation on the board of the group to new owner Aldar Properties.
“The management structure at local level remains unchanged.”
Since its launch in 2010, London Square has completed around 3,500 homes and has a pipeline of 930 homes under construction, valued at £425m, according to Aldar.
In a statement on its website, Aldar added: “The United Kingdom – and London in particular – remains a global hub and a strong real estate market, presenting an attractive entry point for Aldar.
“There is significant value on offer with the market characterised by a structural undersupply of new homes, enabling Aldar to execute its long-term investment strategy for sustained value creation.”
Aldar describes itself as “the leading real estate developer, investor and manager in the UAE”.
The firm’s development sales during the first nine months of 2023 totalled £4.15bn, according to its website.
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