Mubadala sets up realty venture with Singapore firm

Abu Dhabi: Mubadala Development Company on Monday said it has established Capitala, a real estate joint venture with Singapore-based CapitaLand.

Mubadala will own a majority stake of 51 per cent in the new company while CapitaLand is providing for 49 per cent of the capital, which amounts to $300 million.

"The first project for Capitala will be the development of 1.4 million square metres surrounding Zayed Sports City Stadium in Abu Dhabi at the cost of $4-$5 billion," Mubadala's chief financial officer Carlos Obeid told a press conference yesterday.

"We will finance this project through capital injection, banks loans and shareholders' loans, and we have no intention of floating or admitting other partners."

The project at the Zayed Sports City stadium is a mixed-use development, with two kilometres of prime waterfront.

The company is targeting the high-end of the property market with the project.

"This is a large-scale integrated development, based on our extensive experience of establishing such projects in 100 cities in more than 20 countries, including Singapore, China, the UK, Australia and Bahrain's waterfront," explained Heang Fine Wong, CapitaLand GCC Holdings' chief executive officer.

The development includes residential, commercial, and leisure properties to be developed, managed, operated and serviced by Capitala.

"The studies and designs of the project are now at the final stages to be announced in May," Obeid said.

"The land is owned by Mubadala Development, and is not part of the capital, while the evaluation process is still under discussion," he said.

This is the first joint venture for CapitaLand in the UAE and GCC countries, as the company seeks to capitalise on the robust growth of the real estate sector in Abu Dhabi.