Dubai: Aldar will combine with the Abu Dhabi wealth fund to develop commercial real estate assets on Al Maryah Island. These will be built within the Abu Dhabi Global Market, the financial hub and free zone.
Aldar will own a 60 per cent stake in the joint venture, with Mubadala having the rest.
The deal follows close on the heels of Aldar’s buy of four commercial towers at ADGM from Mubadala, which was struck last year. And there was another deal between the two to acquire the Al Maryah Tower, also last year. (The four-tower deal represents one of the biggest for commercial real estate in the UAE.)
"Through our ongoing management and successful leasing programme of the four ADGM office towers, we continue to see considerable demand for Grade A office space on Al Maryah Island," said Jassem Saleh Busaibe, CEO at Aldar Investment.
"Through a phased approach, the joint venture will continue to increase the supply of prime office space on the island to ensure the ADGM freezone grows from strength to strength as a financial centre of global significance. The first project enables us to take the necessary steps to satisfy the current pent up demand, with plans for more to come.”
On completion of the initial office tower’s construction - by end of 2026 - the property will be managed by Aldar Investment, which currently has Dh32 billion of assets under management. The office tower will have a net leasable area of 63,000 square metres and will seek a LEED Gold certification. It will offer 'micro-office, multi-tenanted, and single-tenanted floors'.
The addition of the new tower will bring Aldar Investment’s total net leasable area of commercial office space to over 400,000 square metres.
"Home to ADGM, Al Maryah Island is an international hub for business growth and opportunity in Abu Dhabi, attracting businesses from around the globe," said Khalifa Al Romaithi, Executive Director of UAE Real Estate at Mubadala Investment Company. "Al Maryah Island is a one-stop destination that provides unrivalled connectivity for people to work, live, shop and play.
"Through this joint venture with Aldar, we are solidifying our commitment to enhance the business ecosystem and attract prime partners to Al Maryah Island.”
Demand for prime office space in Abu Dhabi and Dubai have soared since the second-half of 2022, as international businesses sought to relocate or expand their UAE operations. The immediate beneficiaries were those Grade A offices that had come to market recently. In Dubai, this includes the ICD Brookfield Place and the One Central at DWTC.
More to follow...