Mubadala eyes further global expansion

INTERNATIONAL EXPANSION: Mubadala will look to buy land abroad to develop, but is not looking to acquire companies, Thomas said. (ITP images)

Abu Dhabi investment arm Mubadala will look for further real estate opportunities in global markets, a top executive told ArabianBusiness.com on Wednesday.

Mubadala is currently 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.

John Thomas, executive director at Mubadala, said the Malaysian project is the only international project the firm has executed so far, but Mubadala would continue to look for further land acquisitions.

“We have a lot of land in Abu Dhabi we are developing but within four to five years a lot of it will be developed. We are looking at future opportunities around the world, and acquisitions of more land. We are not looking to take over companies - we’ll copy our Malaysian model and bring our development partners with us,” he said.

The Malaysian project was Mubadala’s first international foray and is possibly the largest international investment into the country’s real estate sector, he said.

Thomas said Mubadala could use its US partner The John Buck Company to enter that market, but it was more likely the firm would leverage its stake in the Carlyle Group or Aldar Properties.

“There’s nothing definite at this point but we would look at markets in the Middle East, Asia and North Africa,” he said.

Thomas said investor confidence is strong in the Abu Dhabi property market.

“In Abu Dhabi we are working within a framework and it gives investors confidence. If you build a mall, you know your neighbour is not going to build a mall twice the size next door - it just wouldn’t be allowed. Abu Dhabi is a walkable, livable city on a human scale,” he said.

Mubadala and MGM Mirage said in November they planned to jointly develop the MGM Grand Abu Dhabi hotel resort at a cost of about $3 billion under a new strategy of non-gaming hotels and resorts.

Mubadal is also working with MGM Mirage to develop MGM Grand Abu Dhabi, with the non-gaming MGM Grand Abu Dhabi set to become a centrepiece of a new entertainment peninsula at Mina Zayed, part of a larger 154-acre waterfront development.

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.

Earlier this month the firm announced the development of Suwa Island, off Abu Dhabi's coast, by John Buck International, a joint venture Mubadala set up in March with Chicago-based real estate firm The John Buck Company.

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