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Dubai to get two mixed-use developments in Expo City + Motor City: Motor city developer Union Properties launching its AED 1.16 bn Takaya project in Motor City, while Abu Dhabi-based Aldar Properties is working on a mixed-use development worth over AED 1.75 bn in Expo City.
#1- Dubai-based real estate developer Union Properties is set to begin work on a AED 2 bn project in Motor City dubbed Takaya, it said in a DFM disclosure (pdf). The developer is investing AED 1.16 bn in the project, according to a separate bourse filing (pdf), with 60% of the payment due within three years of construction and 40% post-handover.
The details: Takaya is a mixed-use development housing 744 residential units, including studios and one-, two-, and three-bedroom apartments, across 436.2k sqft. The project also features penthouses, townhouses, and commercial spaces, including a 500 meter retail boulevard.
The project is slated for handover in 4Q 2027, after which it is expected to generate AED 200 mn in net income for Union as of 2025, according to the filing.
We knew this was coming: Last month, Union CEO Amer Khansaheb said the company would invest over AED 6 bn in three Motor City projects over the next 18 months, starting with the Takaya development.
About the other projects: The second project, also valued at AED 2 bn, includes four towers connected by a podium and 3% retail space, Khansaheb said. The third AED 2 bn project is currently in the design and planning phase.
Background: Union’s push into Motor City comes after the developer settled debt with Emirates NBD and Dubailand that it had accumulated during the 2009 property market correction in February, securing a no-objection certificate from Dubailand to repurpose Motor City land for new projects and reaching a debt settlement of AED 850 mn with Emirates NBD.
#2- Abu Dhabi real estate developer Aldar Properties is also introducing a mixed-use development to Dubai’s Expo City beside the Dubai Exhibition Center, under a new joint venture with Expo City Dubai, according to an ADX disclosure (pdf). Aldar and Expo City each have a 50% stake in the JV.
The details: The JV will develop six buildings — spanning a gross floor area of 103k sqm, and including residential, office, and retail spaces — at a total cost of over AED 1.75 bn. Aldar will be responsible for managing the project after completion, with the specific handover date not disclosed.
Expo City is slated for more development work ahead, after Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum approved a new AED 10 bn master plan for developing the site earlier this month. The plan aims to have Expo City accommodate over 35k residents and 40k professionals.
This is the latest of many investments in Dubai: Aldar set aside AED 1 bn earlier this year to expand its logistics operations in Abu Dhabi and Dubai, and AED 5 bn for commercial, retail, and hospitality assets set to open between 2025 and 2027. In July, it also committed AED 1.8 bn to scale its commercial presence in key Dubai business districts.
Aldar is also ramping up efforts to diversify its portfolio: The developer committed AED 1.5 bn last month to expand and revamp its hotels in Abu Dhabi and Ras Al Khaimah. Aldar also teamed up with Mubadala on four joint ventures to develop and manage real estate in Abu Dhabi worth AED 30 bn.
MORE ON EXPO CITY- There’s a lot more coming: The city is getting five new districts that can collectively house 35k residents, along with capacity for some 40k workers, Wam reports. The plan includes over 4.5k EV charging stations, two fuel stations, and emergency service centers.
The breakdown:
- Expo Fields: Features Expo Arena, a 500k square meter venue with a 30k-person capacity, plus housing for 5k residents and retail space.
- Expo Hills: Accommodates 4k residents on the city’s northern edge.
- Expo Downtown: Hosts 6k apartments for 20k residents, along with 130k sqm for retail and dining.
- Expo Business: A 210k sqm district, which includes a conference center, art plaza, and DP World’s global headquarters.
- Expo Valley: Offers 200 villas and 300 townhouses with extensive parks and recreational facilities.
