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Aldar lines up AED 1 bn to expand logistics real estate business: Abu Dhabi-based real estate developer Aldar Properties is pouring AED 1 bn (c. 272 mn) into the expansion of its logistics operations in Abu Dhabi and Dubai, Aldar said in an ADX filing (pdf) on Monday. The investment includes an acquisition of its first logistics zone in Dubai and plans to set up new logistics facilities.
#1- The developer acquired 7 Central Logistics Hub from steel supplier Seven Seas Steel Industries and an adjacent plot in the Dubai Investment Park (DIP). Once developed, the gross leasable area at the hub will be doubled to 38k sqm.
#2- Aldar will work with other real estate firms to set up single-tenant facilities and logistics parks in Dubai, with a total gross leasable area of 200k sqm.
#3- It will also expand its Abu Dhabi facilities: Aldar will add 33k sqm of GLA to its 132 sqm logistics facility in Abu Dhabi, the Abu Dhabi Business Hub, according to the disclosure. Etihad, Twofour54 and Mubadala are among Aldar’s fully leased out ADBH tenants.
Background: This investment follows Aldar’s launch of Haven, the first of its three inaugural Dubai real estate projects, in October last year.
Aldar’s Dubai logistics foray to attract demand for DIP: “Available greenfield areas within DIP already have a significant premium to the market average, and Aldar coming in could make for some more investment plays,” Gulf News reports, citing an analyst. “Logistics and warehousing assets in Dubai and UAE have had three years of high demand, this growth will have more runway by the looks of it,” the analyst added.
Aldar is looking to diversify its portfolio in 2024: “Asset and geographic diversification are core tenets of our growth strategy, and logistics is becoming an important asset class for Aldar. We are experiencing particularly strong demand for high-grade facilities in the UAE, driven by robust intra-regional trade, high-quality infrastructure, and an expanding digital economy,” Aldar CEO Talal Al Dhiyebi said. The developer acquired a 70% majority stake in Abu Dhabi Business Hub (ADBH) back in 2022, marking its foray into the sector.
