A legally binding joint venture agreement has been signed by Dubai Holding, a highly diversified investment company with a vast portfolio of assets valued at Dh130 billion, and Aldar Properties, the top developer, investor, and manager of real estate in Abu Dhabi. The goal of the venture is to create exciting new living experiences throughout key areas of Dubai.
As part of the company’s larger growth into other markets, the milestone agreement marks Aldar’s entry into Dubai’s dynamic real estate market. Following the recent acquisitions of Al Fahid Island in Abu Dhabi and a new waterfront development in Ras Al Khaimah, the move significantly strengthens Aldar’s development pipeline.
The combined venture will create new neighbourhoods over a 38.2 million square foot area in three different places (3.55 million sqm). The new communities, some of the last undeveloped and undeveloped pieces of land in this established and well-liked corridor, will be situated in the suburban centre of Dubai, along the E311 and E611 corridors, near several important residential neighbourhoods.
Aldar will be in charge of the entire development cycle, including concept design, sales, delivery, and management of the developments, with assistance from Dubai Holding, a powerhouse across key sectors and the engine of Dubai’s innovation and knowledge-based economy.
Talal Al Dhiyebi, group chief executive officer at Aldar Properties, said: “Through the execution of our transformational growth agenda, we continue to generate expansion opportunities, which are driving new revenue streams and creating greater shareholder value. Our entry to Dubai is a milestone moment for Aldar, and we are excited about our long-term growth potential in the emirate alongside Dubai Holding, a prominent and strategic partner.”
“We will also continue to explore further expansion and investment opportunities in Dubai, reflecting our belief in the market’s maturing real estate fundamentals and our confidence in its status as a growing and lucrative market, where long-term demand from end-users and investors is well supported by a diversified economy, proactive government policy, and population growth,” he said.
The developments, with a total gross floor area of 19.3 million square feet, will begin to take shape in 2023 and include more than 9,000 units of villas, townhouses, and apartments complemented by retail and communal services (1.8 million sqm). With a focus on premium design, liveability, sustainability, and community, these new communities will provide something new and distinctive to the Dubai market, enabling Aldar to target a larger and more diverse consumer base.
Amit Kaushal, group chief executive officer, Dubai Holding, said: “Over the years, Dubai Holding has played a major role in supporting the growth of the Emirate’s real estate sector. By joining forces with Aldar, one of the market leaders in this field, we are delivering on a shared objective of driving the UAE’s economic growth and creating long-term, sustainable value for all our stakeholders,” he said.
“With the favourable economic environment in Dubai and the upward trend in its real estate sector, we are well positioned to attract international investors through such strategic partnerships that bring new and exciting offerings to the market. The JV with Aldar demonstrates Dubai Holding’s unparalleled track record of being the strategic ‘partner of choice’ for strong regional and institutional investors. In line with our vision to operate For the Good of Tomorrow, we will continue to unlock opportunities that position Dubai as a leading destination for investments from across the globe,” Kaushal added.
In order to gain scale across its primary development and investment property platforms, Aldar is continuing to pursue an accelerated and transformational expansion plan. This is supported by the new joint venture with Dubai Holding.