Aldar and Mubadala ink deal to develop commercial assets in ADGM
The partnership is said to be a testament to the long-standing ambition of both Aldar and Mubadala to drive growth in Abu Dhabi’s real estate market
Following an agreement between Aldar Properties and Mubadala Investment Company, commercial assets will be developed in Al Maryah Island. As per the terms of the deal, Aldar will own a 60% stake in the joint venture (JV), while the rest will be held by Mubadala.
The commercial assets will be developed within Abu Dhabi’s international financial centre and free zone, the Abu Dhabi Global Market (ADGM).
The joint venture, once finalised, will contribute to ADGM’s thriving ecosystem, providing capacity for more businesses to operate from Al Maryah Island. It follows Aldar’s acquisition of the four commercial towers at ADGM from Mubadala, and a subsequent deal between the two parties to partner in the acquisition of Al Maryah Tower, both of which were completed in 2022, a statement from Aldar pointed out.
The partnership is said to be a testament to the long-standing ambition of both Aldar and Mubadala to drive growth in Abu Dhabi’s real estate market, and to play a pivotal role in developing the commercial office offering on Al Maryah Island, which continues to experience a surge in demand.
In early February 2023, Aldar Properties formed a JV with Dubai Holding to enter the Dubai real estate market.
As a result of Aldar’s active asset management and the increased leasing activity, office leasing occupancy of the four ADGM office towers has reached 96%.
The addition of the new tower will bring Aldar Investment’s total net leasable area of commercial office space to over 400,000sqm, said a top official.
“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. 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,” explained Jassem Saleh Busaibe, CEO of Aldar Investment.
Upon completion of the initial office tower’s construction, which is expected by the end of 2026, the property will be managed by Aldar Investment, which currently houses over $8.7bn in assets under management. The office tower will have a total net leasable area of 63,000sqm and aims to be LEED Gold certified. It will offer a varied mix of micro-office, multi-tenanted, and single-tenanted floors, the statement said.
In early February 2023, a new master project was announced on Saadiyat Island by Aldar.
Khalifa Al Romaithi, Executive Director of UAE Real Estate at Mubadala said Al Maryah Island is a one-stop destination that provides unrivalled connectivity for people to work, live, shop, and play.
“Through this JV with Aldar, we are solidifying our commitment to enhance the business ecosystem and attract prime partners to Al Maryah Island,” he concluded.
