UAE’s Aldar Properties unveils Dhs5bn investment plan

UAE’s Aldar Properties has unveiled a $1.4bn (Dhs5bn) investment plan to develop a range of income-generating assets within key destinations in Abu Dhabi.

The assets, which will be held in the property firm’s investment portfolio, will be delivered in a phased manner between 2025 and 2027.

“The ‘develop-and-hold’ approach complements Aldar’s ongoing acquisition of recurring income assets and allows the company to activate its landbank through the development of a variety of real estate asset classes,” the Abu Dhabi-listed firm said in a bourse filing.

The new investment will focus on value-accretive commercial, retail and hospitality assets, which will add to a develop-and-hold portfolio that also includes logistics assets.

“Aldar is driving rapid expansion of its high-value asset portfolio through a disciplined acquisition and develop-and-hold approach, to significantly increase recurring-income streams and long-term capital appreciation,” said Talal Al Dhiyebi, group CEO of Aldar Properties.

“This integrated business model is ratcheting up growth across our core UAE businesses, driven by strong demand for premium real estate.”

Aldar expands commercial assets portfolio

Aldar will develop new commercial assets across three key destinations, Yas Island, Saadiyat Island, and Al Maryah Island as part of the investment plan, amid a growing demand for Grade A office space in Abu Dhabi.

The commercial assets include a new 12-storey office tower that is under development next to the Yas Plaza Hotels on Yas Island and is expected to be handed over in 2025.

The development has 25,000 square metres (sqm) of new leasable area (NLA), inclusive of retail space, and its design allows for the flexibility to subdivide the floorplates and cater to the specific needs of tenants.

Within Abu Dhabi’s financial district on Al Maryah Island, the company will further extend its partnership with Mubadala with the addition of a second Grade A commercial tower that will be added to the site of the 37-storey office building announced in 2023.

The expansion within the financial district follows Aldar’s acquisition of the four Abu Dhabi Global Market towers and Al Maryah Tower in 2022.

The new commercial developments on Saadiyat Island, Yas Island and Al Maryah Island will increase the property developer’s commercial NLA by 31 per cent to 549,000 sqm. Occupancy across Aldar’s commercial property portfolio stands at 95 per cent – with a rapid increase in occupancy registered at the four ADGM towers.

Aldar’s retail & hospitality portfolio

On the retail front, Aldar is developing 78,000 sqm of NLA at Saadiyat Grove, including a central shopping destination, two retail boulevards, and community retail spaces. The central shopping destination will introduce new experiential retail, dining, and entertainment concepts to Abu Dhabi.

The property firm is also developing retail community assets in key Abu Dhabi communities, including Saadiyat Lagoons, Noya, and Yas Golf Collection.

The expansion of the retail portfolio, which benefits from a strong occupancy of 91 per cent as of the end of 2023, follows recent investments at Yas Mall, Al Hamra Mall, and Al Jimi Mall.

Within the hospitality portfolio, Aldar will develop and manage the new Nobu-branded hotel that is set to be developed on Saadiyat Island. The 127-key hotel will feature a range of luxurious guest rooms and deluxe suites as well as a destination Nobu restaurant and rooftop bar.

The office and retail assets are part of the Aldar Investment Properties portfolio, which houses the group’s Dhs25bn of income-generating real estate assets.

Read: Abu Dhabi: Aldar unveils new premium residential community in Yas Park