Aldar to develop Dhs1.8bn The Sustainable City – Yas Island project in Abu Dhabi

Aldar Properties (Aldar) has entered into an agreement with Diamond Developers, to form a JV for the development of The Sustainable City – Yas Island.

Construction of the Dhs1.8bn project is scheduled to commence in Q4 2022, with a 30-month completion target.

The community will span an area of 397,000 sqm in Yas North area of the island in Abu Dhabi.

It will comprise of 864 townhouses and apartments, as well as 3,000 sqm of retail space.

The Sustainable City – Yas Island will be powered by renewable energy, enabling residents to save up to 100 per cent on energy bills.

The masterplan envisions green, energy-efficient designs, car-free residential clusters, recycling facilities, and indoor vertical farms.

In addition to residential and retail elements, it will feature an equestrian centre, mosque, cycling and jogging tracks, and landscaped areas too.

“This agreement marks an important milestone in Aldar’s strategy to accelerate sustainable development in Abu Dhabi. The Sustainable City – Yas Island will have all the elements of high-quality sustainable living and will complement our commitment to carbon reduction, in line with the UAE’s Net Zero by 2050 Strategic Initiative,” said Jonathan Emery, chief executive officer at Aldar Development.

Faris Saeed, chairman of Diamond Developers, the mastermind behind The Sustainable City brand, added, “The successful replication and rapid growth of sustainable developments around the world depends on partnerships and collaborations between public and private sectors. We are pleased to join hands with Abu Dhabi’s leading developer Aldar, and believe this agreement offers substantive opportunities for the exchange of knowledge.”

Last year, Aldar Properties signed a Dhs300m facility with HSBC that links the interest margin payable under the facility to achievement of sustainability targets, making it the first real estate company in the MENA region to enter into a sustainability-linked financing arrangement.

Read: Aldar Properties becomes MENA’s first real estate company to secure sustainability-linked loan

The five-year term sustainability-linked loan includes a mechanism to adjust Aldar’s interest margin annually in line with achievement of targets on energy and water intensity, waste recycling and worker welfare.

Meanwhile earlier this month, Alpha Dhabi Holding (ADH)  announced the acquisition of an additional 17 per cent shareholding of Aldar Properties, therefore increasing its shares in Aldar Properties to 29.8 per cent.

Read more: Alpha Dhabi Holding raises stake in Aldar Properties to 30%