Posted inCulture & SocietyLatest NewsNewsReal EstateRetailTransportUAE

Major Abu Dhabi developments announced as Mubadala and Aldar team up for $8.2bn joint ventures; new $3.5bn island community, $2.5bn retail platform coming soon

Abu Dhabi is set for major transformation following $8.2bn joint venture plan by Mubadala and Aldar

Abu Dhabi Mubadala Aldar
Abu Dhabi is set for major transformation following $8.2bn joint venture plan by Mubadala and Aldar

Abu Dhabi giants Mubadala and Aldar are teaming up to develop projects worth more than AED30bn ($8.2bn).

The new projects will include developing a new island community off the coasts of Saadiyat and Yas Islands, a major retail platform and a new logistics park near Zayed International Airport.

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, has inaugurated a new partnership between Mubadala Investment Company (Mubadala) and Aldar Properties (Aldar) to establish a series of joint ventures to own and manage prime residential, commercial, retail and logistics assets across Abu Dhabi.

Mubadala and Aldar collaborate on Abu Dhabi assets

Sheikh Khaled emphasised the significance of strategic partnerships between the public and private sectors in driving the continued transformation and growth of Abu Dhabi as a global business and lifestyle destination, supporting sustainable economic growth and showcasing investment opportunities offered by the emirate’s business-friendly ecosystem and knowledge and innovation-based economy.

The partnership, which utilises Mubadala’s land bank and institutional expertise and Aldar’s strength in development and asset management, will be owned 60:40 by Aldar and Mubadala respectively.

The four joint ventures include:

  • Creation of a world-class retail platform to consolidate the emirate’s premium shopping destinations
  • The acquisition of sustainable mature residential and commercial income-generating assets in Masdar City
  • The development of strategically located islands adjacent to Saadiyat Island and Yas Island
  • The creation of a logistics park close to Zayed International Airport.

Through the partnership, Mubadala and Aldar will create a AED9bn ($2.5bn) retail platform that will own Abu Dhabi’s existing premier retail destinations.

Aldar will include its flagship retail destination, Yas Mall, while Mubadala will contribute The Galleria LuxuryCollection, a luxury retail experience at Abu Dhabi Global Market, Al Maryah Island.

Abu Dhabi's new unified water management strategy

The new platform is expected to provide substantial synergies for the underlying assets through a coordinated retail strategy that will leverage its scale to attract new luxury brands to Abu Dhabi and provide customers with leading retail experiences.

In addition, Mubadala and Aldar intend to establish a joint venture to own AED3bn ($817m) worth of income-generating real estate assets at Masdar City, Abu Dhabi’s sustainable urban community and free zone hub.

The joint venture, once finalised, 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 per cent.

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 additional assets within the master plan.

In addition, two assets under construction, with a further 50,000 square metres of NLA, are intended to be contributed to the joint venture once completed.

Leveraging Mubadala’s portfolio of prime land across Abu Dhabi, the companies aim to master plan and develop 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 AED13bn ($3.5bn).

The first island sits between Saadiyat Marina and Reem Island along 3km of waterfront. The site, which will be acquired from Mubadala by the joint venture, complements Aldar’s luxury living offering in Saadiyat Cultural District.

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 a AED5bn ($1.4bn) Grade A industrial logistics park in Al Falah with a gross floor area of 1.2 million square metres.

The development is strategically located within a 2km radius of Zayed International Airport with easy access to a number of major highways.

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.