US-based Apollo Global Management will invest $1.4 billion in UAE’s Aldar Properties in what will be the largest foreign direct investment in Abu Dhabi’s private sector.

As part of the deal, which is expected to close in the first quarter of this year, Apollo will take a direct minority stake in Aldar Investment Properties with a $400 million equity investment.

“Apollo is pleased to serve as a long-term capital partner to Aldar and to continue expanding our strategic investments and partnerships in Abu Dhabi, and across the United Arab Emirates. Leveraging our global integrated investment platform and permanent capital base, we were able to structure a capital solution to support Aldar’s transformational growth agenda while allowing our investors to access highly attractive, long-dated yield,” Apollo Chief Executive Officer, Marc Rowan, said.

The investment will be structured as follows: $500 million investment into a land joint venture, $500 million in perpetual subordinated notes issued by Aldar Investment Properties, $300 million in mandatory convertible preferred equity investment in Aldar Investment Properties, $100 million in common equity investment in Aldar Investment Properties

“Aldar’s ability to attract a long-term partner such as Apollo, underscores the strength of Aldar’s business franchise as well as the quality and investment appeal of the Abu Dhabi real estate market, both of which are driven by robust fundamentals underpinning long-term economic growth,” Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, said.