Aldar, Carlyle to co-invest $111m in Europe logistics and storage assets

UAE’s Aldar Properties has partnered with private equity firm Carlyle to co-invest $111m (Dhs407m) in logistics and storage assets in Europe, the Abu Dhabi-based property developer said on Thursday.

Aldar agreed to commit to the Carlyle Europe Realty platform, the investment firm’s pan-European real estate strategy, as part of the deal.

The developer will take a majority stake in a co-investment platform, which includes a portfolio of 14 warehouses in the UK.

The portfolio, which is managed by Carlyle, comprises 900,000 square feet of gross leasable area and is fully occupied with substantial reversion potential.

Aldar also invested alongside Carlyle and other investors in a portfolio of self-storage facilities and development sites in Western Europe.

Within the logistics and self-storage investments, the real estate firm will leverage its development and asset management expertise to help shape the portfolios and partnership, paving the way for it to gain further exposure into the segment.

“Aldar is pursuing a programmatic, themed investment strategy in Europe, building key relationships that will support our growth in the coming years,” said Talal Al Dhiyebi, group CEO of Aldar Properties.

“These newly acquired assets will anchor our logistics business as we continue to explore opportunities, locally and internationally, to build further scale in the coming years.”

Last December, Aldar acquired London-based developer London Square for an enterprise value of $291m (Dhs1.07bn), its first acquisition outside the Middle East.

The deal is expected to have a positive impact on sales, given the opportunities to cross-sell across their respective customer base.

Aldar’s investment portfolio

Aldar, which is 25 per cent owned by Mubadala and 26 per cent by International Holding Company, recently unveiled a $1.4bn (Dhs5bn) investment plan to develop a range of income-generating assets within key destinations in Abu Dhabi.

The properties will be located in Al Maryah Island, Abu Dhabi’s financial district, as well as in Yas Island and Saadiyat Island, to address “strong corporate demand for Grade A office space.”

The new properties, including a 12-storey office tower on Yas Island, a business park on Saadiyat Island, and a second commercial tower on Al Maryah Island, will be completed in phases between 2025 and 2027.

Last year, Aldar awarded 49 contracts worth Dhs22bn for a series of projects, including infrastructure, residential, commercial, and mixed-use developments in Abu Dhabi.

The contracts will result in the delivery of villas, townhouses, apartments, grade A offices, retail spaces, schools, and major road networks within key growth locations in Abu Dhabi including Yas Island, Saadiyat Island, and Al Shamkha.

Read: Aldar Properties invests Dhs1bn to expand logistics portfolio