Aldar to Invest $1.36 Billion to Develop Income-Generating Assets in Abu Dhabi

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Aldar to Invest $1.36 Billion to Develop Income-Generating Assets in Abu Dhabi

Abu Dhabi’s largest listed developer, Aldar Properties, announces plans to bolster commercial, retail, and hospitality sectors amidst rising property demand in the UAE.

In a strategic move to capitalize on the growing demand for property in the UAE, Aldar Properties, the leading developer in Abu Dhabi, has revealed its ambitious investment plan of Dh5 billion ($1.36 billion) to develop a spectrum of income-generating assets in the region. The investment will be focused on commercial, retail, and hospitality sectors, with the aim of expanding Aldar’s recurring income portfolio.

According to a statement released on Tuesday to the Abu Dhabi Securities Exchange, Aldar is set to deliver these new assets in phases between 2025 and 2027. Talal Al Dhiyebi, the Group Chief Executive of Aldar Properties, emphasized the company’s commitment to driving rapid expansion through disciplined acquisition and development strategies, aimed at enhancing recurring-income streams and long-term capital appreciation.

As part of this investment strategy, Aldar will be developing commercial assets in strategic locations including Yas Island, Saadiyat Island, and Al Maryah Island. These developments encompass a 12- storey office tower adjacent to the Yas Plaza Hotels on Yas Island, featuring 25,000 square meters of leasable area with retail space, slated for completion in 2025.

Moreover, Aldar will embark on the development of a business park spanning approximately 26,000 square meters of net leasable area (NLA) at Saadiyat Grove on Saadiyat Island, set to be completed by 2027. This integrated mixed-use development in Abu Dhabi’s Cultural District will comprise four Grade A commercial office buildings.

Expanding its footprint in Abu Dhabi’s financial district on Al Maryah Island, Aldar will extend its partnership with Mubadala by adding a second Grade A commercial tower, enhancing the availability of office space within The Abu Dhabi Global Market upon its completion in 2027. This follows Aldar’s acquisition of the four ADGM towers and Al Maryah Tower in 2022.

Aldar to Invest $1.36 Billion to Develop Income-Generating Assets in Abu Dhabi

The new developments are poised to increase Aldar’s commercial NLA by 31 per cent, reaching 549,000 square meters. Currently, the occupancy rate across the company’s commercial property portfolio stands at an impressive 95 per cent.

The property market in the UAE has witnessed a robust rebound following the pandemic-induced slowdown in 2021, with strong growth continuing into the present. In the fourth quarter of 2023, sales prices for offices in Abu Dhabi surged by 38.7 per cent annually, reflecting a resilient market.

Aldar is not only focusing on commercial developments but is also bolstering its retail portfolio. The company is actively developing 78,000 square meters of NLA at Saadiyat Grove, along with retail assets in Saadiyat Lagoons, Noya, and Yas Golf Collection.

In the hospitality segment, Aldar will undertake the development and management of a 127-room Nobu-branded hotel on Saadiyat Island, slated for completion in the second quarter of 2027.

With these new projects, Aldar aims to bolster its Aldar Investment Properties portfolio, which currently houses Dh25 billion of income-generating real estate assets. This strategic move underscores Aldar’s commitment to sustainable growth and reinforces its position as a key player in the region’s real estate landscape.

In 2022, Aldar attracted significant strategic investment, with Apollo Global Management acquiring a $400 million equity stake in Aldar Investment Properties, further solidifying the company’s financial strength and capacity for expansion.

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