Abu Dhabi-based investment firm Mubadala Development Company has signed an agreement with local developer Eshraq Properties to explore the possibility of setting up a new real estate company in the UAE capital.
The companies have signed a Heads of Terms agreement to assess joint venture opportunities for development, a statement said.
They have agreed on a range of principles relating to the potential joint venture, to develop plots in Abu Dhabi owned by Mubadala on Al Maryah Island and by Eshraq Properties on Al Reem Island.
State-owned Mubadala develops commercial, residential and leisure districts in Abu Dhabi to support its long-term development plans and help its economic diversification. Projects in its portfolio include Abu Dhabi Global Market Square – a business and hospitality hub on Al Maryah Island, Paris-Sorbonne University Abu Dhabi, Rosewood Abu Dhabi – a five star hotel and Zayed Sports City.
Mubadala is also a shareholder in Aldar Properties, Abu Dhabi’s biggest property developer.
Ali Eid AlMheiri, executive director of Mubadala Real Estate and Infrastructure, said: “As a strategic investment company and the master developer of Al Maryah Island, we are looking for experienced partners who can support our wider strategy. We are also pleased to be creating opportunities for a UAE business like Eshraq Properties to participate in the development of prime locations in Abu Dhabi.”
Eshraq Properties, an Abu Dhabi-listed company which has been reporting losses in the last two years, has a portfolio of properties and developments in both Abu Dhabi and Dubai.
In November, Jassim Alseddiqi, who was appointed as the company’s chairman in July 2016, announced that it is investing Dhs750m to develop three projects.
While one of the three projects will be in Jumeirah Village Circle in Dubai, the Abu Dhabi developments include Marina Rise on Reem Island and The Gateway in Sas Al Nakheel.
Alseddiqi said: “We are excited to build a partnership with Mubadala and continue the expansion of our ambitious growth strategy. As we drive our strategic agenda forwards, we are committed to further diversifying our portfolio, escalating our rate of growth and establishing a stronger footing on the balance sheet.”