Aldar’s Strategic Move: Pioneering Logistics Real Estate in Dubai Investments Park

Aldar's Strategic Move: Pioneering Logistics Real Estate in Dubai Investments Park

Aldar Properties, a key player in Abu Dhabi’s real estate scene, is embarking on a significant expansion of its logistics real estate portfolio in Dubai and Abu Dhabi, signaling its commitment to this pivotal sector for future growth.

Investment Details: Allocating an additional Dh1 billion, Aldar has secured its inaugural logistics real estate investment in Dubai. The acquisition includes a 7 Central logistics hub and an adjacent plot within Dubai Investments Park, purchased from Seven Seas Steel Industries LLC. This strategic move will nearly double the property’s current Gross Leasable Area (GLA) from 19,000 square meters.

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Market Entry Success: Having entered the Dubai market just last year, Aldar has already made waves with the successful launch of the first of its three planned residential communities, all of which sold out rapidly.

Strategic Approach: Aldar acknowledges the importance of logistics real estate for its expansion plans and is open to joint ventures to increase its portfolio. The company previously entered into a majority stake deal with Abu Dhabi Business Hub (ADBH) in 2022, emphasizing its commitment to acquiring operational assets and developing ready-to-lease and build-to-suit options for Grade A logistics facilities.

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Demand Dynamics: Talal Al Dhiyebi, Group CEO of Aldar Properties, highlights the strong demand for high-grade logistics facilities in the UAE. This demand is attributed to robust intra-regional trade, top-notch infrastructure, and the expanding digital economy. Aldar aims to leverage its development expertise, balance-sheet investment, and asset management capabilities to create substantial value.

Boost for Dubai Investments Park (DIP): Aldar’s entry into Dubai Investments Park is poised to enhance the region’s status as a commercial real estate hotspot. Analysts suggest that the involvement of Aldar could lead to increased investment opportunities, considering the premium associated with available greenfield areas within DIP.

Expansion Plans: Aldar plans to construct new Grade A logistics facilities across the UAE, with a focus on Dubai. This includes logistics parks and single-tenant buildings, with 200,000 square meters of Gross Leasable Area (GLA) to be developed in collaboration with established logistics real estate players.

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JV Opportunities: Aldar’s expansion strategy involves constructing 233,000 square meters of Grade A logistics facilities through joint ventures. This includes logistics parks and single-tenant buildings in Dubai, with a significant portion of GLA to be developed in partnership with established logistics real estate players.

ADX-Listed Growth: Listed on the Abu Dhabi Securities Exchange (ADX), Aldar envisions expanding the Abu Dhabi Business Hub by an additional 33,000 square meters (GLA). The existing 132,000-square-meter warehouse portfolio is fully leased to prominent tenants such as Twofour54, Mubadala, and Etihad.

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Strategic Outlook: Aldar’s move into logistics real estate aligns with the growing demand in the UAE, driven by intra-regional trade dynamics, robust infrastructure, and a burgeoning digital economy. With a unique blend of expertise, Aldar is poised to capitalize on this growth, creating value through development, investment, and asset management.

In conclusion, Aldar’s foray into logistics real estate marks a strategic milestone, contributing to the evolution of Dubai’s real estate landscape and underlining the company’s commitment to staying at the forefront of the industry

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