Mubadala Investment Company, a sovereign investor owned by the government of Abu Dhabi, and Aldar Properties recently extended their long-standing strategic partnership with the establishment of a series of joint ventures to own and manage assets across Abu Dhabi valued at more than AED30 billion ($8.17 billion).
The partnership seeks to unlock greater value for both entities and drive further transformation and growth in Abu Dhabi, positioning it as a global business and lifestyle destination.
Mubadala and Aldar Properties aim to finalize and complete the transactions within the coming months, subject to final due diligence.
Boosting Abu Dhabi’s appeal
His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, inaugurated the partnership, emphasizing the significance of strategic partnerships between the public and private sectors in driving the transformation and growth of Abu Dhabi.
Sheikh Khaled added that these partnerships support sustainable economic growth and showcase Abu Dhabi’s investment opportunities, business-friendly ecosystem, knowledge, and innovation-based economy.
The partnership utilizes Mubadala’s land bank and institutional expertise and Aldar’s strength in development and asset management. Aldar will own 60 percent of the ventures while Mubadala will hold 40 percent.
“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
The four joint ventures will create substantial value for Abu Dhabi through a world-class retail platform to consolidate the emirate’s premium shopping destinations, the acquisition of sustainable mature residential and commercial income-generating assets in Masdar City, the development of strategically located islands adjacent to Saadiyat Island and Yas Island, and the creation of a logistics park close to Zayed International Airport.
“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.
Through the partnership, Mubadala and Aldar will create an AED9 billion retail platform that will own Abu Dhabi’s existing premier retail destinations. Aldar will include its flagship retail destination, Yas Mall, while Mubadala will contribute The Galleria Luxury Collection, a luxury retail experience at Abu Dhabi Global Market, Al Maryah Island.
Masdar City investment
In addition, Mubadala and Aldar intend to establish a joint venture to own AED3 billion worth of income-generating real estate assets at Masdar City, Abu Dhabi’s sustainable urban community and free zone hub. The joint venture, once finalized, will include existing income-generating commercial and residential properties totaling more than 400,000 square meters of net leasable area (NLA) with overall occupancy currently standing at more than 95 percent.
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Luxury waterfront communities
The companies also aim to masterplan and develop wellness luxury waterfront communities through a joint venture for two undeveloped islands that sit off the coasts of Saadiyat Island and Yas Island. The combined gross development value of the projects stands at AED13 billion.
Landmark logistics park
Mubadala and Aldar are also seeking to develop an AED5 billion grade A industrial logistics park in Al Falah with a gross floor area of 1.2 million square meters. The development is strategically located within a 2km radius of Zayed International Airport with easy access to a number of major highways.
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