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Mubadala, CapitaLand develop 'oasis' project

Abu Dhabi's Mubadala Development Company is teaming up with Singapore-based CapitaLand Group to create a residential, retail, sports and leisure 'oasis in the desert' development in the UAE capital.

The two companies - who have committed an initial joint investment of $300 million - signed a joint venture agreement in Singapore yesterday in a move toward setting up an integrated real estate development company that will oversee the project.
The project is the first strategic partnership for CapitaLand in the Middle East.

It is set to develop and manage the new development that will be built on the land surrounding the existing Zayed Sports City Stadium.

The project - set to span across a 1.4 million-square metre site with a 2 km waterfront area - is scheduled to be unveiled in Abu Dhabi in the coming months.

The first phase of the residential units will be launched for sale before the end of this year, while the phased development schedule will be completed over the next few years.

The venture will seek new real estate opportunities as the project develops in a bid to expand its presence both in Abu Dhabi and the region.

"CapitaLand is widely recognised for its international real estate experience, performance track record and execution capabilities. We are excited by this joint venture since the two companies share a common vision to create quality and sustainable real estate developments in Abu Dhabi," said HE Khaldoon Khalifa Al Mubarak, CEO and Managing Director of Mubadala Development Company.

Government-owned Mubadala will hold a 51% stake in the joint venture while CapitaLand - one of the largest listed real estate companies in Asia - will own the remaining 49% interest.

"The signing of the Joint Venture Agreement with Mubadala paves the way for CapitaLand to establish a long term strategic relationship to grow its presence in Abu Dhabi and around the GCC," said Mr. Liew Mun Leong, President and CEO of CapitaLand Group.

"The fast pace of development in the GCC has often been compared to the rapid growth that we have seen around Asia. We believe that CapitaLand's success in Asia could be transplanted to deliver similar successful developments in Abu Dhabi," Leong added.

The UAE government is aiming to diversify Abu Dhabi's economy and to cut down on its dependence on the oil and gas sector. Part of this plan is seeking to transform the emirate into a world-class tourism and business destination.

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