Gulf Construction Online - Aldar, Mubadala set up JVs to manage $8.17bn assets

UAE Focus

Abu Dhabi Global Market towers in the UAE capital.

Aldar, Mubadala set up JVs to manage $8.17bn assets

01 October 2024

Aldar Properties and Mubadala Investment Company, a sovereign wealth fund owned by the Government of Abu Dhabi, have boosted their strategic partnership by establishing a series of joint ventures. These ventures aim to own and manage assets across Abu Dhabi, valued at over AED30 billion ($8.17 billion).

This collaboration seeks to unlock value for both parties while driving the transformation and growth of Abu Dhabi as a leading global business and lifestyle destination, according to the companies.

The announcement was made during an inauguration ceremony attended by HH Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council.

Leveraging Mubadala’s extensive land bank and institutional expertise, alongside Aldar’s development and asset management strengths, the partnership will see a 60:40 ownership split, with Aldar holding the majority stake. The joint ventures are designed to enhance Abu Dhabi’s value through key initiatives, such as:

• Creating a world-class retail platform to consolidate the emirate’s premium shopping destinations;

• Acquiring sustainable residential and commercial income-generating assets in Masdar City;

• Developing strategically located islands adjacent to Saadiyat Island and Yas Island;

• Establishing a logistics park near Zayed International Airport.

The parties plan to finalise these transactions in the coming months, pending the completion of due diligence processes.

The agreements will build on Mubadala and Aldar’s longstanding partnership. Following Aldar’s acquisition of the four Abu Dhabi Global Market towers from Mubadala in 2022, a joint venture was created between both parties to acquire Al Maryah Tower and develop further Grade A commercial space across Abu Dhabi’s international financial centre.

Through the partnership, Mubadala and Aldar will create an AED9 billion retail platform that will own Abu Dhabi’s existing premier retail destinations.

In addition, Mubadala and Aldar intend to establish a joint venture to own AED3 billion worth of income-generating real estate assets at Masdar City, Abu Dhabi’s sustainable urban community and free zone hub.

Leveraging Mubadala’s portfolio of prime land across Abu Dhabi, the companies aim to masterplan 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 AED13 billion.

Mubadala and Aldar are also seeking to develop a AED5 billion Grade A industrial logistics park in Al Falah with a gross floor area of 1.2 million sq m, within a 2-km radius of Zayed International Airport with easy access to major highways.