Aldar Properties and Mubadala Investment Company, a sovereign wealth fund owned by the Government of Abu Dhabi, have deepened their strategic partnership by establishing a series of joint ventures. These ventures aim to own and manage assets across Abu Dhabi, valued at over AED30 billion ($8.17 billion).
This collaboration seeks to unlock value for both parties while driving the transformation and growth of Abu Dhabi as a leading global business and lifestyle destination, according to a company statement.
The announcement was made during an inauguration ceremony attended by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council. He highlighted the importance of public-private partnerships in fostering sustainable economic growth and positioning Abu Dhabi as a hub for investment and innovation.
Leveraging Mubadala’s extensive land bank and institutional expertise, alongside Aldar’s development and asset management strengths, the partnership will see a 60:40 ownership split, with Aldar holding the majority stake. The joint ventures are designed to enhance Abu Dhabi’s value through key initiatives, such as:
* Creating a world-class retail platform to consolidate the emirate’s premium shopping destinations.
* Acquiring sustainable residential and commercial income-generating assets in Masdar City.
* Developing strategically located islands adjacent to Saadiyat Island and Yas Island.
* Establishing a logistics park near Zayed International Airport.
These ventures will further Abu Dhabi's standing as a global destination for business, tourism, and real estate investment, driving innovation within the emirate's knowledge-based economy. The parties plan to finalize these transactions in the coming months, pending the completion of due diligence processes.
Talal Al Dhiyebi, Group Chief Executive Officer of Aldar, said: “This deal represents the continued evolution of our strategic partnership with Mubadala, with the latest collaboration designed to create substantial value for both parties by combining Aldar’s expertise in real estate asset management and development, and Mubadala’s portfolio of high-quality income-generating assets and land bank. 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.”
Dr Bakheet Al Katheeri, Chief Executive Officer of UAE Investments Platform at Mubadala, said: “Mubadala welcomes the expansion of its longstanding partnership with Aldar through these strategic joint ventures. Capitalising on Aldar's position as the national real estate champion with a proven track record in development and active asset management, along with Mubadala's portfolio of prime land and established income-generating assets, this collaboration, once concluded, is expected to unlock significant value creation opportunities. This strategic partnership aims to optimise asset utilisation, drive long-term returns, and continue to position Abu Dhabi as the global premier business and lifestyle destination."
The agreements will build on Mubadala and Aldar’s longstanding partnership. Following Aldar’s acquisition of the four Abu Dhabi Global Market towers from Mubadala in 2022, a joint venture was created between both parties to acquire Al Maryah Tower and develop further Grade A commercial space across Abu Dhabi’s international financial centre.
Creation of a premium retail platform
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.
The new platform is expected to provide substantial synergies for the underlying assets through a coordinated retail strategy that will leverage its scale to attract new luxury brands to Abu Dhabi and provide customers with world class retail experiences, the statement said.
The transaction provides diversification benefits for both parties and significant revenue upside from active asset management provided by Aldar, which has an excellent track record in retail value creation and will own a majority stake in the platform. The Galleria Luxury Collection is also located within the financial district, providing additional synergies for Aldar, having acquired the four adjacent ADGM towers in 2022. Occupancy at the towers now stands at 95%, it said.
Joint ownership of Masdar City assets
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 finalised, will include existing income-generating commercial and residential properties totalling more than 400,000 sq m of net leasable area (NLA) with overall occupancy currently standing at more than 95 per cent. The partners will own the 14 assets within the Masdar City Green REIT, with all buildings LEED Gold or LEED Platinum certified, as well as three further assets within the masterplan. In addition, two assets under construction, with a further 50,000 sq m of NLA, are intended to be contributed to the joint venture once completed.
Development of luxury communities
Leveraging Mubadala’s portfolio of prime land across Abu Dhabi, the companies aim to masterplan and develop wellness-focused 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.
The first island sits between Saadiyat Marina and Reem Island along 3km of waterfront. The site, which will be acquired from Mubadala by the joint venture, complements Aldar’s luxury living offering in Saadiyat Cultural District. The joint venture will also acquire a 3.7 million sq m island that sits between Yas Island and Al Raha from Mubadala and will be developed as a premium waterfront villa community.
Development of a landmark logistics park
Mubadala and Aldar are also seeking to develop a AED5 billion Grade A industrial logistics park in Al Falah with a gross floor area of 1.2 million sq m. The development is strategically located within a 2-km radius of Zayed International Airport with easy access to a number of major highways. - TradeArabia News Service
