Aldar Properties PJSC (“Aldar”) 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 center in Abu Dhabi, located on Al Maryah Island.
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 assets will be held by Aldar Investment Properties (“AIP”), the region’s largest institutional-class real estate platform and are valued at AED 4.3 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 AED 7 billion.
Developed by Mubadala in 2013, the Grade A office towers at ADGM are built to international standards and are the first in the UAE to achieve LEED Core and Shell Gold precertification by the US Green Building Council. The buildings have a ventilated double skin façade, PV panels, external shades, occupancy sensed lighting and more.
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 H.E Mohamed Khalifa Al Mubarak, Chairman of Aldar and Musabbeh Al Kaabi, Chief Executive Officer of UAE Investments at Mubadala Investment Company.
Commenting on the transaction, Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, 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 epicenter 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.
Ali Al Mheiri, Executive Director of UAE Diversified Assets at Mubadala Investment Company, 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 realize 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 recognized businesses to its thriving community.”
Aldar is pursuing a strategy for transformational growth and has conducted several major transactions in 2022, notably a landmark US$1.4 billion investment into the company by Apollo Global Management.
During the first half of 2022, Aldar acquired retail and hospitality assets in Ras Al Khaimah and logistics and hospitality assets in Abu Dhabi. The ADGM office tower acquisition further diversifies Aldar’s investment property portfolio, increasing the share of the commercial office segment to 34% of total assets by value. As a result of these transactions, Aldar Investment’s assets under management have increased to AED 30 billion as at the end of H1 2022.
Opened in October 2015 on Al Maryah Island, Abu Dhabi Global Market (ADGM) is the UAE’s capital international financial center and the only financial free zone in Abu Dhabi that enables occupiers to conduct both onshore and offshore businesses. Charting into its 7th year, ADGM delivered a substantial progress, enhancing its international standing and cementing its reputation as a leading IFC and its recognition as a destination of choice for those seeking to do business with and from the region. Its fast-growing business community continued to flourish with major industry players such as Abu Dhabi Investment Authority (ADIA), Abu Dhabi National Oil Company (ADNOC), BNP Paribas, Kraken, JP Morgan, CITI, Blackstone, Reliance Industries and CITCO.