Abu Dhabi’s Aldar Properties is allocating an additional Dh1 billion for the expansion of its logistics real estate business in Dubai and Abu Dhabi. The developer considers this sector pivotal for its future growth. In a noteworthy move, Aldar has acquired its inaugural real estate asset in Dubai – a 7 Central logistics hub, alongside an adjacent plot. Once developed, this acquisition will nearly double the current gross leasable area (GLA) of the property from 19,000 square meters. The facility, situated in Dubai Investments Park, was purchased from Seven Seas Steel Industries LLC. Aldar’s entry into the Dubai market occurred in the previous year with the successful launch of the first of three planned residential communities. To bolster its logistics real estate portfolio in Dubai, Aldar is open to exploring joint ventures, building on its initial venture with a majority stake in Abu Dhabi Business Hub (ADBH) in 2022. The latest investment encompasses the acquisition of operational assets and the development of ready-to-lease and build-to-suit Grade A logistics facilities, as per the company’s statement.
Why logistics real estate
“Talal Al Dhiyebi, Group CEO of Aldar Properties, highlighted the robust demand for top-tier facilities in the UAE, propelled by strong intra-regional trade, excellent infrastructure, and a burgeoning digital economy. Aldar is strategically positioned to leverage this growth, utilizing a distinctive combination of development expertise, balance-sheet investment, and asset management to generate significant value.”
Advantage DIP too
With Dubai Investments Park firmly established as a prime commercial real estate hub, Aldar’s entrance is expected to enhance its appeal. An analyst noted, “The existing undeveloped areas in DIP command a premium over the market average, and Aldar’s involvement may stimulate additional investment opportunities.”
“Over the past three years, there has been substantial demand for logistics and warehousing assets in Dubai and the UAE, and it appears that this growth trend will persist,” the analyst added.
Aldar’s plans for JVs
In the UAE, the ADX-listed company intends to build new Grade A logistics facilities covering 233,000 square meters. This includes logistics parks and single-tenant buildings in Dubai, with a development plan for 200,000 square meters of gross leasable area (GLA) “in collaboration with established logistics real estate players.”
Simultaneously, the Abu Dhabi Business Hub will experience a 33,000-square-meter (GLA) expansion. The hub’s existing warehouse portfolio, spanning 132,000 square meters, is fully leased to prominent tenants, including Twofour54, Mubadala, and Etihad.
