Abu Dhabi (Etihad)
Aldar Properties intends to invest 5 billion dirhams to develop a group of income-generating assets within key destinations in Abu Dhabi. The assets, which Aldar will hold in the company’s investment portfolio, will be developed in several stages between 2025 and 2027.
The “develop and hold” approach complements Aldar’s ongoing acquisitions of recurring income-generating assets, and allows the company to benefit from its large stock of land by developing a variety of real estate asset classes. Following a thoughtful approach to allocating capital, Aldar's new investment will focus on assets with accretive value in the areas of trade, retail and hospitality, which will be added to the comprehensive investment portfolio of assets being developed and held, in addition to logistics assets.
Talal Al Dhiyebi, CEO of Aldar Properties Group, said that the company is working to achieve continuous and rapid growth in its asset portfolio, by following a thoughtful approach to acquisition, development and retention, with the aim of significantly enhancing recurring income streams and increasing capital in the long term. He stressed that the company's team is working to achieve great value across various real estate asset classes, and to benefit from the growing strengths in planning and development strategies, all the way to leasing and asset management, indicating that this integrated business model contributes to enhancing growth across the company's core business portfolio in the UAE. Driven by strong demand for prime real estate.
Given the strong demand for premium office space in Abu Dhabi, Aldar will, as part of its investment program, develop new commercial assets in three major destinations: Yas Island, Saadiyat Island and Al Maryah Island. These assets include a new 12-storey office tower currently being developed next to the Yas Plaza hotels on Yas Island, and is expected to be delivered in 2025. The project includes a gross leasable area of 25,000 square meters, including retail space, and its design is characterized by a modular nature that allows… Flexibility in dividing the office space, to suit the requirements of tenants.
On Saadiyat Island, Aldar will develop a business park with a new leasable area of approximately 26,000 square meters in the Saadiyat Grove project, an integrated mixed-use project located in the heart of Abu Dhabi’s cultural district. The project is scheduled for completion in 2027, and includes four buildings consisting of premium commercial offices located within a business park that applies concepts of sustainability and communication with the entire cultural district.
Aldar will expand its partnership with Mubadala Investment Company by adding a second premium commercial tower within the financial center on Al Maryah Island in Abu Dhabi, in addition to the 37-storey office tower that was announced in 2023. This joint project, once completed in the third quarter, will contribute From 2027, it will provide a total leasable area of 98,000 square meters on site, in addition to enhancing the availability of premium office space within the Abu Dhabi Global Market. This expansion comes after Aldar acquires the four towers in Abu Dhabi Global Market and Al Maryah Tower in 2022.
In total, Aldar's new commercial projects on Saadiyat Island, Yas Island and Al Maryah Island will contribute to increasing the gross commercial leasable area by 31% to 549,000 square metres. The occupancy rate within Aldar’s portfolio of commercial properties is 95%, with a rapid increase in the occupancy rate recorded in the four towers in the Abu Dhabi Global Market, reaching 96% at the end of 2023.
In terms of retail assets, Aldar is developing 78,000 square meters of total leasable experimental retail space in the Saadiyat Grove project, including a central shopping destination, two retail streets, and community retail spaces.
In other key communities in Abu Dhabi, such as the Saadiyat Lagoons, Noya, and Yas Golf Collection projects, Aldar will develop community retail assets that will be operated according to the phased deliveries of each project. The expansion of the retail portfolio, which benefits from a strong occupancy rate of 91% until the end of 2023, comes after Aldar’s recent investments that aim to reimagine the retail experience in Yas Mall, Al Hamra Mall, and Al Jimi Mall.
Aldar, within its portfolio of hotel assets, will initiate the development and management of the new Nobu Hotel on Saadiyat Island, to be completed in the second quarter of 2027. The hotel, which will consist of 127 residential units, will include a group of luxurious and spacious rooms, and luxurious suites, in addition to… To Nobu Restaurant and a rooftop drinks lounge.
Once the asset development is completed, it will be part of Aldar Real Estate Investment Company’s portfolio, which includes Aldar Group’s revenue-generating real estate asset management unit, valued at 25 billion dirhams. Aldar Investments, of which Apollo Global Management is a minority shareholder, has a proven track record in active leasing and asset management, ensuring that newly acquired projects will deliver strong returns quickly.
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