Abu Dhabi real estate assets valued over $8.1 billion will be managed by Aldar and Mubadala under a new agreement.
The two corporations will establish four joint ventures, to accelerate Abu Dhabi’s rise as a top global business destination.
As part of a new collaboration agreement, Aldar Properties, the largest real estate developer in Abu Dhabi, and Mubadala Investment Company will create four joint ventures to own and manage real estate assets valued at over AED 30 billion ($8.1 billion) around Abu Dhabi.
The alliance was presented by Sheikh Khaled bin Mohamed, the Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council.
Aldar and Mubadala will control 60:40 of the collaboration, which leverages Mubadala’s institutional and land bank experience and Aldar’s strengths in development and asset management as announced on Wednesday by both businesses.
According to the two firms, the new “joint ventures will create substantial value for Abu Dhabi through the acquisition of sustainable, mature residential and commercial income-generating assets in Masdar City, as well as a world-class retail platform to consolidate the emirate’s premium shopping destinations.”
The most recent agreement between the two firms also includes the development of islands next to Yas Island and Saadiyat Island as well as the establishment of a logistics park near Zayed International Airport.
As part of an agreement, the two businesses struck last year, Aldar and Abu Dhabi’s sovereign wealth fund Mubadala are already working together to develop commercial assets on Al Maryah Island.
The agreement came after Aldar had purchased four commercial towers at Abu Dhabi Global Market from Mubadala, and the two had later agreed to collaborate on the purchase of Al Maryah Tower, both of which were finished in 2022.
Chief executive of Mubadala’s UAE investments platform Bakheet Al Katheeri stated, “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.”
In line with their most recent agreement, Yas Mall and The Galleria Luxury Collection in Abu Dhabi will be owned by a AED 9 billion retail platform that Mubadala and Aldar will establish.
The two businesses also want to form a joint venture to acquire income-producing real
estate holdings in Masdar City valued at AED 3 billion. This comprises all actively operating income-producing commercial and residential properties with a net leasable area (NLA) of over 400,000 square meters and an occupancy rate of over 95%.
In addition to the three more assets in the master plan, the partners will hold the 14 assets in the Masdar City Green Reit (a real estate investment trust).
Furthermore, the two companies state that upon completion, two currently under-construction properties totaling an additional 50,000 square meters of the net leasable area will be incorporated into the joint venture.
As part of the new agreement, they will also concentrate on developing two islands off the coast of Yas Island and Saadiyat Island. The projects have a combined gross development value of AED 13 billion.
The joint venture will purchase two islands from Mubadala, one between Yas Island and Al Raha and the other between Saadiyat Marina and Reem Island, to be turned into waterfront home complexes.
Additionally, Mubadala and Aldar intend to build a AED 5 billion Grade A industrial logistics park with a gross floor space of 1.2 million square meters in Al Falah, close to Zayed International Airport.
The purchase is likely to be completed in the coming months, subject to final due diligence, according to the firms.
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