WAM: Aldar Properties has signed an agreement with Mubadala Investment Company to acquire four prime Grade A commercial towers in Abu Dhabi Global Market (ADGM), the international financial centre in Abu Dhabi, located on Al Maryah Island.
The assets, which will be held by Aldar Investment Properties (AIP), are valued at AED4.3 billion, representing one of the largest real estate transactions in the UAE, bringing Aldar’s total capital deployment into recurring income assets during 2022 to over AED7 billion.
The transaction includes the four main office towers in ADGM located on Al Maryah Island — Al Sila, Al Sarab, Al Maqam, and Al Khatem — with a total net leasable area of 180,000 sqm. Aldar will also take ownership of the North and South car parks, which serve the office towers, and other mixed-use space.
The acquisition positions AIP’s portfolio to benefit from the attractive growth prospects of the Grade A commercial office market on Al Maryah Island and particularly in ADGM.
The agreement was signed by Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, and Ali Al Mheiri, Executive Director of UAE Diversified Assets at Mubadala Investment Company. The signing was witnessed by Mohamed Khalifa Al Mubarak, Chairman of Aldar, and Musabbeh Al Kaabi, Chief Executive Officer of UAE Investments at Mubadala Investment Company.
Commenting on the acquisition, Al Dhiyebi said, “We continue to be active in pursuit of capital deployment opportunities to expand our portfolio as part of our transformational growth agenda. The office towers at ADGM are non-replicable assets in Abu Dhabi, positioned at the epicentre of the financial district, and allow us to diversify our commercial offering and income streams. Our strong long-term relationship with Mubadala and the strategic nature of the transaction will result in Aldar driving forward ADGM’s position as the most desirable destination in the region for international financial services entities.”
In addition to being the master developer of the 116-hectare island Al Maryah Island, Mubadala Investment Company is a founding shareholder in Aldar Properties PJSC, currently holding a 25% position.
Al Mheiri, in turn, commented, “Today’s transaction is a milestone in Mubadala’s long history as master developer of Al Maryah Island and the right moment for Mubadala to realise the value of the four grade A towers after nearly a decade of ownership.
“As the UAE’s largest real estate developer and asset manager, Aldar brings the right operational expertise to enhance Abu Dhabi Global Market’s burgeoning business ecosystem, strengthen its competitiveness, and attract world-class internationally recognised businesses to its thriving community.”
Aldar is pursuing a strategy for transformational growth and has conducted several major transactions in 2022, notably a landmark $1.4 billion investment into the company by Apollo Global Management.