Abu Dhabi-based giant Aldar Properties has partnered with global venture capital outfit Fifth Wall to invest in its European Real Estate Technology Fund.
The largest listed developer in the United Arab Emirates is the first limited partner from the MENA region to invest in the fund as Aldar looks to top into Fifth Wall’s network of property tech (PropTech) start-ups in Europe, to gain access to the latest technologies and trends that are driving the evolution of the real estate sector.
The European PropTech Association is expecting $185 billion to be invested in PropTech globally before 2025.
Aldar, which primarily operates in Abu Dhabi, has been looking to expand abroad as it faces limited growth prospects in the United Arab Emirates. Home prices and rents have dropped for nearly seven years in Abu Dhabi, and the coronavirus pandemic aggravated the situation.
Maan Al Awlaqi, Aldar’s executive director of strategy and transformation, said: “Our investment in Fifth Wall marks the next phase of our innovation journey and will allow us to keep pace with the advancements of the Fourth Industrial Revolution.
“The fund provides us with access to global knowledge and solutions that will complement our investments in regional start-ups and established in-house innovation programmes.”
The partnership adds to Aldar’s existing portfolio of investments and initiatives that are focused on promoting innovation and technology in the real estate and retail sectors.
Last month it was announced that Aldar Properties had offered to buy a majority stake in Egypt’s Sixth of October for Development & Investment Co.
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