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Investment fund Mubadala
Development Co will transfer a 14-percent stake in
Aldar Properties to Abu Dhabi Commercial Bank
in return for a loan facility, according to a
statement on Thursday.

Mubadala, which owns 49 percent of the struggling developer
after an Abu Dhabi government bailout, said the shares -
totalling 571.9 million - will revert back to it in April 2013
when the facility matures, or earlier if repaid ahead of
schedule.

The two firms did not disclose the size of the facility. At
Thursday's Aldar closing share price of 1.22 dirhams, the stake
is worth nearly 700 million dirhams ($190.58 million)

Reuters reported in January that Abu Dhabi has held talks to
offload all or part of the 49-percent government stake in
struggling Aldar in an attempt to stop its falling asset value
from dragging down Mubadala.

Mubadala, which unveiled plans to buy a $2 billion stake in
Brazil's EBX Group earlier this week, took part in a government
rescue of Aldar last year by subscribing to a $2.8 billion
convertible bond issued by the developer in March 2011.

Mubadala, with assets worth around $46 billion, converted a
portion of the bond to equity in December. Full conversion could
eventually raise Mubadala's stake to 60 percent.

"It appears as though Mubadala is taking all necessary steps
to avoid raising its ownership in Aldar," said a regional fixed
income analyst speaking on condition of anonymity.

"For ADCB, this is a high quality loan to Mubadala secured
with collateral, Aldar, so basically it is balance sheet growth
for the bank."

The Abu Dhabi government has given Aldar nearly $10 billion
in bailout funds, almost equivalent to the amount it extended to
neighbouring emirate Dubai at the height of its 2009 debt
crisis.

While Dubai's crisis came as a shock to global markets, the
Abu Dhabi reckoning has been a more gradual and incremental
process as real estate values continue to slide in the emirate.

Earlier this month, Aldar and local rival Sorouh Real Estate
said they were in talks for a state-backed merger that
could create a company worth some $15 billion in assets.

A decision on the tie-up will be made within three months,
they said at the time.

"This facility is part of Mubadala's ongoing financing
strategy, enabling a source of funding on commercially viable
terms while maintaining Mubadala as a long-term shareholder of
Aldar," Thursday's statement said.

($1 = 3.6730 UAE dirhams)

(Additional reporting by Mala Pancholia; Editing by Amran
Abocar)

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