A property group backed by Middle Eastern royalty is making a major move into the UK, signalling the region’s growing appetite for overseas real estate as domestic markets boom.
United Arab Emirates–based Arada announced it will acquire a 75 per cent stake in Regal Holdco, the parent company of London developer Regal, in a deal worth $680 million (A$1.05 billion).
Regal has a pipeline of 10,000 homes and is active in the student and senior living sectors.
Arada is owned by Sheikh Sultan bin Ahmed Al Qasimi, deputy ruler of the Sharjah emirate, and Prince Khaled bin Alwaleed bin Talal, son of Saudi billionaire Prince Alwaleed bin Talal.
The Financial Times reported the company, which expanded into Australia last year, will rebrand its new UK business as Arada London, with Regal’s current executive team staying on.
“London is one of the world’s leading cities,” Sheikh Sultan said, calling the acquisition “a strategic step for Arada in response to strong demand for residential space.”
The developer plans to triple Regal’s housing pipeline within three years.
The move comes as Gulf developers, flush with cash from a five-year property boom in Dubai, look abroad for growth.
Emaar, Dubai’s state-backed giant, recently told the Financial Times it is considering overseas expansion on the back of strong earnings.
Arada’s investment lands amid the UK’s pledge under the new Labour government to deliver 1.5 million new homes in five years — a goal now challenged by rising construction costs and economic volatility.
Regal’s latest accounts show £252m in short-term debt and £196m in investment property as of March 2024, with offices already in Hong Kong, Shanghai and Abu Dhabi — suggesting Arada is buying into a developer with both local presence and international reach.
This deal underscores London’s enduring pull for Gulf investors and could accelerate the capital’s pipeline of premium housing projects at a time when the UK government is under pressure to increase supply.
