Mubadala and Aldar To Develop Assets Worth $8.17 Billion

Mubadala Investment Company, the Abu Dhabi government owned sovereign wealth fund, and Aldar Properties, one of the leading real estate companies in the region, have announced establishment of four joint ventures (JVs) to own and manage assets across Abu Dhabi valued at more than $8.17 billion.

The parties aim to finalise and complete the transactions within the coming months, subject to final due diligence.

The JVs aims to unlock greater value for both parties and drive further transformation and growth of Abu Dhabi as a global business and lifestyle destination, Aldar said in a disclosure with Abu Dhabi Securities Exchange (ADX).

Inaugurating the partnership, H H Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council, said that such  partnerships between the public and private sectors will drive the continued transformation and growth of Abu Dhabi as a global business and lifestyle destination, supporting sustainable economic growth and showcasing investment opportunities offered by the Emirate’s business-friendly ecosystem and knowledge and innovation based economy.

The partnership, which utilises Mubadala’s land bank and expertise and Aldar’s strength in development and asset management, will be owned 60:40 by Aldar and Mubadala respectively, Aldar said in the filing.

These new JVs 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.

Following Aldar’s acquisition of the four Abu Dhabi Global Market towers from Mubadala in 2022, a JV was created between both parties to acquire Al Maryah Tower and develop further Grade A commercial space across Abu Dhabi’s international financial centre.

Premium Retail Platform

Through the partnership, Mubadala and Aldar will also create an $2.45 billion retail platform and 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 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%.

Income Generating Assets

In addition, Mubadala and Aldar intend to establish a JV to develop $820 million worth of income-generating real estate assets at Masdar City. The JV, 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%.

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.

Luxury Waterfront 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 $3.54 billion. The first island is between Saadiyat Marina and Reem Island along 3 km of waterfront. The site, which will be acquired from Mubadala, complements Aldar’s luxury living offering in Saadiyat Cultural District.

The JV 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.

Mubadala and Aldar are also seeking to develop an $1.36 billion Grade A industrial logistics park in Al Falah with a gross floor area of 1.2 million sq. m. This project is located] within a 2 km radius of Zayed International Airport with easy access to a number of major highways.