Mubadala property arm developing $5.6bn of projects

PROPERTY ARM: Mubadala Development is working on residential and commercial projects in Abu Dhabi and Malaysia. (ITP images)

Mubadala Development Company, an Abu Dhabi investment arm which manages over $10 billion in assets, said on Tuesday its new real estate arm is developing at least $5.6 billion worth of projects in Abu Dhabi and Malaysia.

It is working on the $5 billion Arazanah residential project in Abu Dhabi in joint venture with southeast Asia's largest developer Singapore-based CapitaLand and is leading a consortium in developing a $600 million city in Nusajaya in the Iskandar region of Malaysia.

"Our new division is aimed at making investments that set a new standard by bringing high quality commercial and residential real estate hospitality and related services to Abu Dhabi and outside," Mubadala Chief Operating Officer, Waleed Al-Muhairi, told a conference at a property show.

Mubadala Real Estate and Hospitality will finance its real estate projects through a combination of debt, equity and pre-sales, the firm's executive director John Thomas said, declining to be more specific.

Mubadala and US casino operator MGM Mirage said in November they planned to jointly develop the MGM Grand Abu Dhabi hotel resort at a cost of about $3 billion.

"We are also closely working with MGM Mirage to develop MGM Grand Abu Dhabi, MGM's first foray into the Middle East," Muhairi said. "The non-gaming MGM Grand Abu Dhabi will become a centrepiece of a new entertainment peninsula at Mina Zayed, part of a larger 154-acre waterfront development," he said.

Construction will commence in 2009 with the first phase set to open in 2012.

Mubadala is partnering with Los Angeles-based Kor Hotel Group to bring its luxury branded hotels, The Tides and Viceroy to the Middle East and has set up a joint venture with Italian luxury furniture brand Poltrona Frau Group, Muhairi said. (Reuters)

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