Aldar Properties of Abu Dhabi is investing an extra Dh1 billion to grow its logistics real estate company in Dubai and Abu Dhabi; this is a category that the developer has deemed highly important for future expansion.
Additionally, it has purchased its first piece of real estate in Dubai, a 7 Central logistics hub and an adjoining plot that, when developed, will nearly double the property’s current gross leasable area (GLA) of 19,000 square meters.
The facility is located in Dubai Investments Park and is sold by Seven Seas Steel Industries LLC.
Aldar entered the Dubai market late last year when it opened the first of three planned residential communities. The first releases sold out right away.
To increase the amount of logistics real estate it owns in Dubai, Aldar will also consider joint ventures.
The company made its first such deal through a majority stake in Abu Dhabi Business Hub (ADBH) in 2022. “The latest investment includes the acquisition of operational assets as well as the development of ready-to-lease and build-to-suit options for Grade A logistics facilities,” said a statement.
Why logistics real estate
“We are experiencing particularly strong demand for high-grade facilities in the UAE, driven by robust intra-regional trade, high-quality infrastructure, and an expanding digital economy,” said Talal Al Dhiyebi, Group CEO of Aldar Properties. “Aldar is well positioned to capitalize on this growth, deploying a unique blend of expertise in development, balance-sheet investment, and asset management to create substantial value.”
Advantage DIP too
For Dubai Investments Park, already firmly ensconced as a commercial real estate hotspot, the Aldar entry will help with greater traction. “Available greenfield areas within DIP already has a significant premium to the market average, and Aldar coming in could make for some more investment plays,” said an analyst.
“Logistics and warehousing assets in Dubai and UAE have had 3 years of high demand – this growth will have more runway by the looks of it.”
Aldar’s plans for JVs
In the UAE, the ADX-listed company plans to construct new Grade A logistics facilities spanning 233,000 square meters. This comprises logistics parks and single-tenant buildings in Dubai, with 200,000 square meters of gross leasable area (GLA) to be developed “in partnership with established logistics real estate players.”
The Abu Dhabi Business Hub will also expand by 33,000 square meters (GLA). The location’s 132,000-square-meter warehouse portfolio is entirely leased to tenants, including Twofour54, Mubadala, and Etihad.