Dubai South and Aldar Properties have formed a joint venture to develop high-quality logistics facilities in Dubai South. The partnership aims to enhance Dubai South’s Logistics District by introducing new and premium offerings, including build-to-lease and build-to-suit facilities.
According to the Government of Dubai Media Office, Aldar will be responsible for designing, developing, and delivering these logistics assets, starting with a Grade A facility spanning nearly 24,000 square meters. This facility will be located near major global brands such as Amazon, Noon, and DHL, offering dual customs solutions and excellent accessibility to Al Maktoum International Airport. The first facility is expected to be completed by the end of 2024, with future development planned for third-party logistics, e-commerce, and retail tenants.
Read more: Alpha Dhabi becomes parent company of Aldar Properties
Expansion of build-to-suit and build-to-lease projects
Aldar recognizes the logistics sector as a strategic asset class and is diversifying its real estate portfolio accordingly. The projects undertaken with Dubai South are part of Aldar’s AED1 billion ($272.26 million) investment in logistics real estate. This investment includes developing other build-to-suit and build-to-lease projects across the UAE. Aldar also acquired the 7 Central Logistics Hub and an adjacent plot in Dubai Investments Park.
The partnership agreement was signed at Dubai South headquarters, witnessed by His Excellency Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South, and Talal Al Dhiyebi, Group CEO of Aldar.
Khalifa Al Zaffin highlighted the partnership’s significance in enhancing Dubai South’s logistics infrastructure. The partnership aims to meet the evolving needs of various sectors. It also aims to further establish Dubai South as a key hub in the region’s economic development, he added.
For his part, Talal Al Dhiyebi emphasized the strategic nature of the partnership. The partnership aims to capitalize on the UAE’s investment in infrastructure, digital economy, and growing demand for delivery services.
Aviation and logistics hub
Dubai South is the largest single urban master development in Dubai, focusing on aviation and logistics. It aims to create a thriving community by leveraging its aviation, logistics, and real estate products, as well as its world-class infrastructure solutions, which include the world’s largest airport when fully operational.
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