In a strategic move to bolster its logistics real estate business, Abu Dhabi’s Aldar Properties is injecting an additional Dh1 billion into Dubai and Abu Dhabi. The mega-developer, already renowned for its successful residential communities, has set its sights on Dubai Investments Park (DIP) for its maiden logistics real estate acquisition. This groundbreaking move is part of Aldar’s larger plan to capitalize on the surging demand for high-grade logistics facilities in the UAE.
Aldar’s Dubai Debut:
Late last year, Aldar marked its entry into the dynamic Dubai real estate market by unveiling the first of three planned residential communities, which saw an instant sellout. Now, the developer is diversifying its portfolio with a significant logistics-related acquisition in the form of the 7 Central logistics hub at DIP, purchased from Seven Seas Steel Industries LLC. This strategic investment will nearly double the current gross leasable area (GLA) of 19,000 square meters.
Strategic Joint Ventures:
Aldar is not stopping at individual acquisitions. The company is actively pursuing joint ventures to amplify its logistics real estate footprint in Dubai. Building on its successful majority stake acquisition in Abu Dhabi Business Hub (ADBH) in 2022, Aldar aims to develop ready-to-lease and build-to-suit options for Grade A logistics facilities. This innovative approach positions Aldar as a key player in meeting the growing demand for logistics spaces in the region.
The Logistics Real Estate Advantage:
According to Talal Al Dhiyebi, Group CEO of Aldar Properties, the strong demand for high-grade logistics facilities in the UAE is fueled by robust intra-regional trade, top-notch infrastructure, and a burgeoning digital economy. Aldar is strategically positioned to harness this growth by leveraging its expertise in development, balance-sheet investment, and asset management to create substantial value.
Boost for Dubai Investments Park:
Dubai Investments Park, already a commercial real estate hotspot, stands to gain significantly from Aldar’s entry into the logistics sector. With available greenfield areas within DIP already commanding a premium, Aldar’s involvement is expected to attract further investment. Analysts anticipate that the growth trajectory of logistics and warehousing assets in Dubai and the UAE will continue, with Aldar’s influence potentially opening up new investment opportunities.
Aldar’s Ambitious Plans:
Aldar plans to construct 233,000 square meters of new Grade A logistics facilities across the UAE. This includes single-tenant facilities and logistics parks in Dubai, amounting to 200,000 square meters of GLA. These developments will be realized through partnerships with established logistics real estate players, showcasing Aldar’s commitment to collaborative growth.
Additionally, a 33,000 square meter GLA expansion is on the horizon for the Abu Dhabi Business Hub. Currently fully leased at its existing capacity of 132,000 square meters, the hub’s warehouse portfolio boasts tenants such as Etihad, Mubadala, and Twofour54.
Conclusion:
Aldar Properties’ foray into Dubai’s logistics real estate market marks a pivotal moment for the developer and the industry as a whole. With strategic acquisitions, joint ventures, and a focus on Grade A facilities, Aldar is poised to shape the future of logistics real estate in the UAE. As the demand for premium logistics spaces continues to soar, Aldar’s visionary approach positions it as a key player in driving innovation and creating substantial value in this dynamic sector.
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