Aldar and Dubai South officials at the signing ceremony.
Dubai South, Aldar JV to develop logistics assets
01 March 2024
Dubai South, the largest single-urban master development focusing on aviation, logistics and real estate, has entered into an agreement with Aldar Properties, a leading real estate developer, investor, and manager in the UAE, to set up a new joint venture that will develop Grade A logistics facilities in Dubai South.
Through the partnership, Aldar and Dubai South will work collaboratively to bring new and premium offerings to Dubai South’s Logistics District, including build-to-lease and build-to-suit facilities.
Under the deal, Aldar will be responsible for the design, development, and delivery of these new logistics assets, starting with a Grade A logistics facility totalling almost 24,000 sq m of gross floor area (GFA).
The plot – adjacent to global brands including Amazon, Noon and DHL – offers dual customs solution and is strategically located with high accessibility and in close proximity to Al Maktoum International Airport.
Dubai South said the first facility is expected to be completed and tenant-ready by the year-end, thus paving the way for further development of both build-to-lease and build-to-suit assets, for third-party logistics (3PL), ecommerce, and retail tenants.
Having identified the logistics sector as a key asset class of focus, Aldar is adding selective exposure to the segment, aligned with its asset diversification plans into alternative and high-growth real estate asset classes.
The projects being developed with Dubai South form part of Aldar’s recently announced AED1 billion ($272 million) investment in logistics real estate, which also includes the development of other build-to-suit and build-to-lease projects across the UAE, and the acquisition of seven Central Logistics Hub and an adjacent plot in Dubai Investments Park.
The partnership agreement was signed at Dubai South headquarters and witnessed by Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South and Talal Al Dhiyebi, Group Chief Executive Officer of Aldar.
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