Dubai South and Abu Dhabi-based Aldar Properties have formed a joint venture to develop Grade A logistics facilities in Dubai South.
The plot is strategically located near Al Maktoum International Airport and is adjacent to global brands such as Amazon, Noon and DHL.
The two organizations will work collaboratively to bring new and premium offerings to Dubai South’s Logistics District, including build-to-lease and build-to-suit facilities. Aldar will be responsible for the design, development, and delivery of these new assets, starting with a Grade A logistics facility totalling almost 24,000 sqm of gross floor area (GFA).
This first facility is expected to be completed and tenant-ready by the end of 2024 and paves the way for further development of both build-to-lease and build-to-suit assets, for third-party logistics, e-commerce, and retail tenants.
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South said: “As Dubai South continues to shape the future of logistics, our partnership with Aldar represents a strategic leap towards further enhancing our logistics infrastructure, in line with our mission to foster a dynamic business environment via state-of-the-art facilities.
“We will leverage Aldar’s expertise in real estate development to elevate the logistics landscape. The new logistics facilities are a testament to our dedication to meet the evolving needs of third-party logistics, e-commerce, and retail sectors.”
Dubai South: Aviation and logistics hub
Dubai South is the largest single-urban master development focusing on aviation, logistics and real estate. It will have the world’s largest airport when fully operational, complemented by a multi-modal transport infrastructure connecting air, land and sea.
Aldar has identified the logistics sector as a key asset class of focus and recently announced an AED1 billion ($270 million) investment in logistics real estate. This also includes the development of other build-to-suit and build-to-lease projects across the UAE, and the acquisition of 7 Central Logistics Hub and an adjacent plot in Dubai Investments Park.
Talal Al Dhiyebi, Group Chief Executive Officer at Aldar, added: “In line with our growth strategy, we are excited to forge this strategic partnership with Dubai South, bringing together two like-minded partners with complementary capabilities.
“This collaboration marks the inception of a dynamic venture that will capitalise on the UAE’s ongoing investment in infrastructure development, growing digital economy, and increasing demand for delivery services, with investment-grade logistics assets that exceed international tenant standards.”
The partnership agreement was signed at Dubai South headquarters and witnessed by Al Zaffin and Al Dhiyebi.
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