His Highness Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, has launched a new strategic partnership between Mubadala Investment Company (Mubadala) and Aldar Properties (Aldar), to launch a series of joint ventures to own and manage high-quality residential, commercial, retail and logistics assets across Abu Dhabi, with a total investment value exceeding AED 30 billion.
His Highness stressed the importance of strengthening strategic partnerships between the public and private sectors to support the sustainable economic development process in Abu Dhabi, consolidate its position as a leading global destination for business and living, and highlight the investment opportunities offered by the emirate through its business-supportive system and its knowledge- and innovation-based economy.
The new partnership, which is 60% owned by Aldar and 40% owned by Mubadala, benefits from Mubadala’s strategic land bank, capabilities and long experience as an institutional investor, and Aldar’s extensive experience in asset development and management.
The partnership includes four joint projects, including: establishing an investment portfolio and managing retail assets that bring together the most prominent and upscale shopping destinations in the emirate, acquiring sustainable and income-generating residential and commercial assets in Masdar City, developing residential projects on strategically located islands next to Saadiyat and Yas Islands, and establishing a logistics complex near Zayed International Airport.
Under the partnership, Mubadala and Aldar will create a AED 9 billion retail investment and asset management portfolio, comprising Abu Dhabi’s most prominent existing shopping destinations.
This portfolio will include Aldar’s Yas Mall shopping destination, and Mubadala’s The Galleria Luxury Collection, which offers an exceptional luxury shopping experience at Abu Dhabi Global Market on Al Maryah Island.
The new portfolio is expected to achieve high levels of integration of key assets through a unified, integrated retail strategy that leverages its scale to attract new luxury brands to Abu Dhabi and provide world-class shopping experiences.
In addition, Mubadala and Aldar intend to establish a joint venture, aiming to own income-generating real estate assets worth AED 3 billion in Masdar City, the sustainable urban complex and free zone in Abu Dhabi.
When completed, the joint venture will comprise income-generating commercial and residential properties with a gross leasable area of over 400,000 square metres, with an occupancy rate currently exceeding 95%. The partners will own 14 assets within the Masdar Green Real Estate Investment Fund – all of which are LEED Platinum or Gold rated – in addition to three additional assets within the master plan. The joint venture will also comprise two assets “under construction” with an additional leasable area of 50,000 square metres.
Leveraging Mubadala’s prime land bank in Abu Dhabi, the two parties will seek to develop luxury waterfront communities focused on providing a modern lifestyle for their residents. This will be done through a joint project that includes the development of two islands located off the coasts of Saadiyat and Yas Islands. The total value of these projects amounts to AED 13 billion.
The joint venture will acquire two islands from Mubadala. The first is located between Saadiyat Marina and Reem Island, with a three-kilometre waterfront. This site will provide a qualitative addition to the projects being developed by Aldar in the Saadiyat Island Cultural District. The second is located between Yas Island and Al Raha Beach, with an area of 3.7 million square metres, and will be developed as a luxury villa complex on the waterfront.
Mubadala and Aldar are also seeking to develop a first-class industrial logistics complex in Al Falah worth AED 5 billion with a total floor area of 1.2 million square metres. The complex enjoys a strategic location two kilometres from Zayed International Airport and is connected to the main highway network.
His Highness Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, during the launch of this strategic partnership between Mubadala and Aldar, was accompanied by Khaldoon Khalifa Al Mubarak, Chairman of the Executive Affairs Authority, Managing Director and Group CEO of Mubadala Investment Company; Mohamed Khalifa Al Mubarak, Chairman of the Department of Culture and Tourism – Abu Dhabi and Chairman of Aldar Properties; Waleed Al Mokarrab Al Muhairi, Deputy Group CEO of Mubadala; Talal Al Dhiyebi, Group CEO of Aldar Properties; and Dr. Bakheet Al Katheeri, Chief Investment Officer of Mubadala in the Emirates.
• 60% of the ownership of the new partnership is for “Aldar”, and 40% for “Mubadala”.
• 400 thousand square meters of leasable space upon project completion.
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