Abu Dhabi's Waha Capital to sell 17 leased warehouse buildings to Peninsula for $151m

The all-cash transaction is expected to close by the end of 2022

Warehouses at the Almarkaz industrial development near Abu Dhabi, the first project of Waha Land, a Waha Capital subsidiary. Silvia Razgova / The National

Waha Capital, which counts Abu Dhabi’s Mubadala Investment Company among its shareholders, has agreed to sell its 17 leased warehouse buildings situated on five plots in Almarkaz Industrial Development to Peninsula Real Estate Management for Dh555 million ($151.10m).

The all-cash transaction for approximately 362,000 square metres of industrial space in the development is expected to close by the end of 2022, subject to regulatory approvals, the Abu Dhabi-listed investment management company said in a bourse filing on Monday.

The real estate development at Almarkaz was developed in line with Abu Dhabi’s Vision 2030 plan to advance the industrial and logistics sector of the emirate, Hazem Al Nowais, chief executive of Waha Land, a wholly-owned subsidiary of Waha Capital, said.

“Waha Land, over several years, has transformed this greenfield site, which was granted by the Government of Abu Dhabi, into a Grade A industrial and logistics park," he said.

Based in Al Dhafra, 35 kilometres west of Abu Dhabi, Almarkaz has been developed by Waha Land as an integrated mixed-use industrial development.

The development aims to capitalise on easy access to the UAE’s growing industrial and logistics infrastructure, including major land, sea, air and rail routes. Small industrial units at the development are 90 per cent occupied and leased to more than 75 tenants from a diverse range of industry segments, including defence, oil and gas, logistics, manufacturing and data centres.

In addition to the five plots, Peninsula — a real estate investment company incorporated in Abu Dhabi Global Market — has also agreed to acquire an additional 136,000 square metres of completed and income-producing industrial properties that Waha Land is currently developing.

The leasing is expected to commence once construction is completed in the third quarter of next year.

Following the sale, Waha Land will continue to focus on developing the remaining land bank assets it currently owns, the statement said.

"Peninsula looks forward to working with Waha Land as they develop future stages of Almarkaz, as well as to maintaining the high levels of service that Waha Land has long offered to its tenants," James Gallon, chief executive of Peninsula, said.

The acquisition is one of a number of transactions that Peninsula will be announcing in the months ahead "as we continue to build a portfolio with diversified and highly visible cash flows”, he added.