UAE-based developers Mubadala Development Company and Eshraq Properties have announced plans to set up a new real estate company which will jointly develop plots in Abu Dhabi.

The move comes following the signing of a heads of terms pact in which the two parties agreed on a range of principles relating to the potential joint venture to jointly develop plots owned by Mubadala on Al Maryah Island and Eshraq Properties on Al Reem Island.

Ali Eid Al Mheiri, the executive director of Mubadala Real Estate and Infrastructure, said: "We are delighted to explore partnership opportunities with Eshraq Properties through this agreement. As a strategic investment company and the master developer of Al Maryah Island, we are looking for experienced partners who can support our wider strategy and bring the right credentials to these projects."

"We are also pleased to be creating opportunities for a UAE business like Eshraq Properties to participate in the development of prime locations in Abu Dhabi," stated Mheiri.  

Eshraq Properties has a portfolio of diversified properties and development opportunities in both Abu Dhabi and Dubai, including Marina Rise on Reem Island and The Gateway in Sas Al Nakhl.

Following the appointment of Jassim Alseddiqi as new chairman in July last year, Eshraq Properties has established a strong financial footing and laid out a new growth strategy.

Alseddiqi said: "We are excited to build a partnership with Mubadala and continue the expansion of our ambitious growth strategy. This joint venture will benefit greatly from the combined depth of resources and experience from both parties."

"As we drive our strategic agenda forwards, we are committed to further diversifying our portfolio, escalating our rate of growth and establishing a stronger footing on the balance sheet," he added.  

Al Maryah Island is the business and lifestyle destination at the heart of the capital, connected to the cultural and entertainment districts of Abu Dhabi.

It is home to Abu Dhabi Global Market, the world’s newest international financial center, comprising world-class commercial, hotel, retail, leisure, healthcare, and residential components.-TradeArabia News Service