Aldar Properties Invests $272 Million in Expanding Logistics Real Estate in Dubai and Abu Dhabi

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Aldar Properties, a prominent real estate developer, investor, and asset manager in the UAE, is set to bolster its presence in the logistics real estate sector with a substantial investment of AED 1 billion ($272.27 million). This strategic move aims to cater to the escalating demand for Grade A logistics facilities in Dubai and Abu Dhabi.

Aldar Properties initially ventured into the logistics sector in 2022 by acquiring the majority stake in the Abu Dhabi Business Hub (ADBH). The latest investment encompasses the procurement of operational assets and the development of ready-to-lease and build-to-suit options, showcasing Aldar’s commitment to meeting the evolving needs of the market.

In a significant expansion into the Dubai market, Aldar has acquired the 7 Central logistics hub along with an adjacent plot. Once developed, this addition is expected to nearly double the current gross leasable area (GLA) of 19,000 square meters. The facility, strategically located in Dubai Investments Park, one of the city’s well-established industrial areas, was purchased from Seven Seas Steel Industries.

Aldar Properties is also set to embark on a substantial development pipeline, planning to build 233,000 square meters of new Grade A logistics facilities across the UAE. This ambitious plan includes the construction of single-tenanted facilities and logistics parks in Dubai, totaling 200,000 square meters of GLA. The company will collaborate with established logistics real estate players in this venture. Additionally, Aldar plans a 33,000 square meter GLA expansion of its premium logistics facility, ADBH, in Abu Dhabi. The ADBH warehouse portfolio, currently fully leased at its 132,000 square meter capacity, boasts diverse institutional tenants, including Etihad, Mubadala, and Twofour54.

Talal Al Dhiyebi, Group Chief Executive Officer of Aldar Properties, emphasized the significance of asset and geographic diversification in the company’s growth strategy. He stated, “Logistics is becoming an important asset class for Aldar, and we are experiencing particularly strong demand for high-grade facilities in the UAE.” Al Dhiyebi highlighted the driving forces behind this demand, including robust intra-regional trade, high-quality infrastructure, and an expanding digital economy. He added, “Aldar is well positioned to capitalize on this growth, deploying a unique blend of expertise in development, balance sheet investment, and asset management to create substantial value.”

The move aligns with the broader growth of the UAE’s logistics sector, which is being bolstered by significant investments in transportation and infrastructure to support economic diversification. Aldar’s expansion into various logistics facilities, ranging from supply chain and fulfillment warehouses to last-mile centers, reflects the company’s commitment to meeting the evolving needs of the market.

As Aldar Properties continues to position itself at the forefront of the UAE’s real estate landscape, this investment signals a pivotal moment in the company’s strategic expansion and commitment to providing top-tier logistics solutions in key markets.

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