Ronald Barrot was CEO of Aldar Properties until 12 October 2008 when he was appointed advisor to the chairman and member of the board of this record breaking Abu Dhabi real estate giant. A few days prior to his departure he spoke to RFP about Asia, the implications of the economic crisis and Aldar’s prospects.
Aldar was established primarily to create world-class real estate developments for the nation of Abu Dhabi, whilst providing a stable and profitable investment portfolio. The company states that it is dedicated to “innovation, excellence in urban design and sustainable development. Our priority is the immediate and future benefit of Abu Dhabi and its residents.†It is made up of over 20,000 investors and includes numerous national enterprises.
Barrott led the company through a period of growth and points out it boasts an A-credit rating, unusual for a company with only three years behind them, he says. It is this strength that will see the company through any rough economic years in the global economy. “Life’s gotta go onâ€, he says. Granted banks are going to be tighter on the people they lend to, he accedes, but this is not unreasonable. He notes that companies with rigorous compliance, proper capitalisation, solid assets and willingness to meet international standards of accounting and transparency will be rewarded. Those that can “tick all the boxes.. ..good robust companies†will receive the means to grow despite the downturn.
Barrott is particularly bullish on Asia, particularly on the prospects of Aldar’s large scale master development in Johor in Malaysia. He points out that they are now in serious discussions with major banks about making significant commitments as future occupiers of the site. He says that the banking sector is attracted to places like Malaysia at present because it is a developing economy. Additionally, Johor’s proximity to Singapore makes it an ideal low-cost alternative.
That said, there is still two years to go before the first buildings go up. In the mean time Barrott predicts that there are efficiencies to be made. Building commodity prices that were “going skyward a couple of months
ago†are bound to cool with the other markets, he belives. Despite its age, he says Aldar is in one of the best positions to participate in large scale developments. He even sees opportunities beyond Asia, in new locations such as Kazahkstan where Aldar can use its experience and expertise. For example, he points to projects such as the 650,000 sqm development Al Raha gardens, an integrated community offering residences, schools and shops was one of their first developments. Current projects total up to 6mil sqm worth of mixed use developments.
Barrott joined Aldar two years after it broke records with an IPO that raised US$103 bil and was 448-times over subscribed. Promoted, like the man who now replaces him, from the position of COO he led the company through a rapid period of growth. He was hired for his ability to develop real estate businesses, which he did by expanding Aldar’s wings across the Middle East and Asia. On his leaving office, Ahmed Al Sayegh, Chairman said: “Our business has benefited hugely from an entrepreneurial focus on growth led by Ron Barrott over the last three years and I look forward to his contribution as advisor to Aldar. Growth still remains a priority; however our obligation and focus are necessarily now about executing against the opportunities that have been built for our shareholders, customers and partners.†RFP - Issue 48/49
