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Abu Dhabi sovereign investor Mubadala and Aldar Properties have entered into a partnership to manage and develop assets worth 30 billion UAE dirham ($8.17 billion) in the UAE capital.
In a 60-40 split between Aldar and Mubadala, respectively, the four new joint ventures will utilise the property developer’s asset management experience and the sovereign investment company’s land bank, a statement read on ADX.
The deal will include the establishment of an AED 9 billion retail platform that will own Abu Dhabi’s existing shopping destinations, including Aldar’s Yas Mall, and Mubadala’s The Galleria Luxury Collection on Al Maryah Island.
In addition, Mubadala and Aldar will establish a joint venture to own AED 3 billion worth of income-generating real estate assets at Masdar City, Abu Dhabi’s sustainable urban community and free zone hub.
The deal will include existing income-generating commercial and residential properties totalling more than 400,000 square metres 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.
The two companies will also build luxury waterfront communities in prime Abu Dhabi locations, including the development of 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 AED 13 billion.
The joint venture will also acquire a 3.7 million square metre 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 AED 5 billion Grade A industrial logistics park in Al Falah with a gross floor area of 1.2 million square metres.
(Writing by Bindu Rai, editing by Seban Scaria)
