ABU DHABI: Mubadala Investment Company (Mubadala) has formed a new partnership with Aldar Properties (Aldar) to establish a series of joint ventures to own and manage prime residential, commercial, retail and logistics assets across Abu Dhabi, with a combined value of more than AED30 billion.
The partnership underscores the vital role that public-private collaborations play in the economic diversification and sustainable growth of Abu Dhabi.
By leveraging the strengths of both Mubadala and Aldar, the partnership seeks to enhance the emirate’s appeal to investors and residents alike.
The partnership delineates an ownership structure where Aldar will hold a 60% stake, while Mubadala will retain the remaining 40%.
The joint venture framework will utilise Mubadala’s extensive land bank and institutional expertise, alongside Aldar’s proven strength in property development and asset management. Together, they will embark on four key initiatives aimed at transforming the landscape of Abu Dhabi’s property market.
One of the most ambitious components of this partnership is the creation of a AED9 billion retail platform designed to consolidate Abu Dhabi’s premium shopping destinations.
The initiative includes significant contributions from both partners, with Aldar bringing in its flagship shopping venue, Yas Mall, and Mubadala contributing The Galleria Luxury Collection, which epitomises luxury retail experiences in the UAE.
Attracting new brands
The synergy embedded in this retail strategy is intended to attract new luxury brands to Abu Dhabi, thereby enriching the overall consumer experience and further enhancing the emirate’s allure as a shopping destination.
In addition to retail ventures, Mubadala and Aldar plan to focus on Masdar City, an emblem of sustainability in urban development. They intend to establish a joint venture to manage AED3 billion worth of income-generating real estate assets within this eco-friendly community.
Industrial logistics park
The portfolio will comprise over 400,000 square meters of net leasable area, featuring properties that exemplify sustainability through their LEED Gold and Platinum certifications. This venture not only promises high occupancy rates but also aligns with Abu Dhabi’s commitment to sustainability and innovation.
Moreover, leveraging Mubadala’s extensive land resources, the partnership aims to develop wellness-focused luxury waterfront communities on two undeveloped islands situated near Saadiyat Island and Yas Island.
With a projected gross development value of AED 13 billion, these projects represent a commitment to enhancing the quality of life and residential offerings in the emirate, appealing to both local and international investors seeking luxurious living conditions.
Finally, the partnership is poised to establish a Grade A industrial logistics park in Al Falah, with a remarkable gross floor area of 1.2 million square meters.
The strategically located facility, within proximity to Zayed International Airport and major highways, aims to cater to the growing logistical needs of businesses while supporting the emirate’s economic diversification efforts.
