Recently, Aldar Properties and Mubadala Investment Company, a sovereign investor owned by the Abu Dhabi government, expanded their long-standing strategic partnership by forming several joint ventures to own and manage properties in Abu Dhabi worth more than AED30 billion ($8.17 billion).
Through the partnership, Abu Dhabi will be positioned as a major global hub for business and leisure, and greater value will be unlocked for both parties.
Subject to final due diligence, Mubadala and Aldar Properties hope to close and complete the transactions in the upcoming months.
Boosting Abu Dhabi’s appeal
The Honorable At the partnership’s inception, Abu Dhabi’s Crown Prince and Chairman of the Executive Council, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, emphasized the value of strategic alliances between the public and private sectors in advancing Abu Dhabi’s development and evolution.
These alliances, according to Sheikh Khaled, promote sustainable economic growth and highlight Abu Dhabi’s investment prospects, business-friendly environment, and knowledge-and innovation-based economy.
The collaboration makes use of Aldar’s prowess in development and asset management and Mubadala’s institutional and land bank experience. Thirty percent will be held by Mubadala and sixty percent by Aldar.
“We expect these opportunities to deliver attractive returns for our shareholders and to make a notable contribution to Abu Dhabi’s development as a premier international business and lifestyle destination,” stated Talal Al Dhiyebi, group CEO of Aldar.
World-class retail platform
Through the establishment of a world-class retail platform to combine the emirate’s top shopping destinations, the acquisition of mature, sustainable residential and commercial income-generating assets in Masdar City, the development of strategically placed islands next to Saadiyat Island and Yas Island, and the construction of a logistics park near Zayed International Airport, the four joint ventures will significantly increase Abu Dhabi’s worth.
“This strategic partnership aims to optimize asset utilization, drive long-term returns, and continue to position Abu Dhabi as the global premier business and lifestyle destination,” added Dr Bakheet Al Katheeri, CEO of UAE Investments Platform at Mubadala.
Mubadala and Aldar will collaborate to establish an AED9 billion retail platform that will be the owner of Abu Dhabi’s current top shopping locations. Yas Mall, Aldar’s premier shopping destination, will be included, and Mubadala will provide The Galleria Luxury Collection, an upscale shopping experience at Abu Dhabi Global Market, Al Maryah Island.
Masdar City investment
Furthermore, Mubadala and Aldar plan to form a joint venture to acquire income-producing real estate holdings at Masdar City, the free zone hub and sustainable urban community of Abu Dhabi, valued at AED 3 billion. After everything is said and done, the joint venture will consist of current income-producing residential and commercial properties totaling more than 400,000 square meters of net leasable area (NLA), with an occupancy rate of more than 95% overall.
Luxury waterfront communities
The companies also intend to jointly venture for two undeveloped islands off the coasts of Saadiyat Island and Yas Island, with the goal of master planning and developing wellness luxury waterfront communities. The projects have a combined gross development value of AED 13 billion.
Landmark logistics park
In addition, Mubadala and Aldar want to build a 1.2 million square meter grade A industrial logistics park in Al Falah for AED 5 billion. The development is ideally situated with easy access to several major highways, just 2 km from Zayed International Airport.