Aldar and Mubadala to develop Abu Dhabi's real estate sector

Aldar Properties and investment firm Mubadala have signed key terms for the development of commercial assets on Al Maria Island, which will be located within the Abu Dhabi Global Market (ADGM), the capital's international financial hub and free zone.

Upon completion, the joint project will contribute to the ADGM ecosystem by enabling more businesses to operate from Al Maria Island. This follows Aldar's purchase of four commercial ADGM towers from Mubadala, and their subsequent acquisition of Al Maryah Tower. Both projects were completed in 2022.

The partnership is a testament to Aldar and Mubadala's long-standing commitment to driving the growth of the Abu Dhabi real estate market and to play a key role in developing the supply of commercial offices on the island of Al Maria, which continues to grow in demand. As a result of Aldar's active asset management and increased leasing activity, the occupancy of four ADGM leased office towers has reached 96%.

Aldar will own 60% of the joint venture and Mubadala the remaining 40%. With the completion of the initial construction of the office tower, which is expected by the end of 2026, the property will be taken over by Aldar Investment, which currently manages more than AED 32 billion in assets. The office tower will have a total net leasable area of 63,000 sqm and will be LEED Gold certified. The building will offer a diverse mix of micro-offices, multi-family and single-family floors. The addition of the new tower will increase Aldar Investment's total leasable commercial office space to over 400,000 sqm.

Aldar Investment CEO Jasem Saleh Busaibe said that thanks to their ongoing management and successful ADGM four office tower lease program, they continue to see significant demand for Class A office space on Al Maria Island. Through a phased approach, the joint venture will continue to increase the supply of prime office space on the island to ensure the growth of the ADGM Free Zone as a financial center of global importance. The first project will make it possible to take the necessary steps to meet the current unmet demand with plans for the future.

Khalifa Al Romaiti, Chief Executive Officer of UAE Real Estate at Mubadala, said their joint venture with Aldar represents another milestone in our longstanding partnership and commitment to Al Maria Island as the premier place to live and do business in the capital. Al Maria Island, home of ADGM, is an international business growth and opportunity hub in Abu Dhabi, attracting companies from all over the world. With world-class offerings, the area is a versatile place that provides people with a great opportunity to work, live, shop and have fun. Through this joint venture with Aldar, they reinforce their commitment to improving the business ecosystem and bringing key partners to Al Maria Island.

The original office tower will be conveniently located due to its proximity to ADGM, Cleveland Clinic, The Galleria Al Maryah Island. It will have access to air-conditioned connectivity to the wider Al Maria Island ecosystem, including the Al Maria Island Gallery, ADGM Square, Rosewood, Four Seasons and Cleveland Clinic Abu Dhabi.

Established in October 2015 on Al Maria Island, Abu Dhabi Global Market (ADGM) is the fastest growing and leading International Financial Center (IFC) in the capital of the UAE. ADGM's business community continues to thrive with major regional and international industry players moving towards the capital city of Abu Dhabi and contributing to the growth of the economy.