Aldar launches Yas Park Gate villa development next to new family park

Aldar Properties has launched Yas Park Gate, a Dh1.15 billion ($313.14 million) gated community located alongside what it said is a first of its kind family and recreational activity park in Abu Dhabi.

Set in the North Yas development on Yas Island, it will feature 508 new homes and have access to the 115,000 square metre Yas Park.

Aldar said construction of Yas Park Gate is due to begin in the first quarter of 2023, with handovers expected to commence in the first quarter of 2026.

“Yas Park Gate represents the next stage of the broader North Yas masterplan, which will further solidify the island as one of Abu Dhabi’s most sought-after destinations," said Rashed Al Omaira, chief commercial officer at Aldar Development.

"Our research has shown growing customer demand for amenity-driven communities, so that has been a core focus for this development. As such, we expect to see strong demand from homeowners and international and local investors seeking an attractive investment opportunity.”

Aldar's Yas Park Gate development will have sports facilities near by. Photo: Aldar

Units at Yas Park Gate will be available for purchase by all nationalities from September 1.

Two and three-bedroom townhouses start at Dh1.74 million, while four-bedroom villas start from Dh3.2m.

The homes will have Mediterranean-style architecture, and buyers will have a choice of two interior colour options.

Yas Park will feature a tranquil forest, shallow lagoon, canopied oasis, an interactive fountain, adventure playground, and a central lawn for concerts and live events, according to Aldar.

The community facilities have been designed for football, tennis, basketball, cricket, paddle tennis, beach volleyball, skater park and bounce park.

Abu Dhabi recorded 7,474 property transactions worth more than Dh22.51bn in the first six months of the year, as the UAE’s property market continues to rebound from the coronavirus-induced slowdown.

Yas Island recorded the highest value of transactions, with deals worth Dh1.8bn, followed by Al Saadiyat Island with transactions valued at Dh1.2bn.

In June, Aldar launched the Yas Golf Collection, a Dh1.7bn resort-style development that aims to tap into the growing demand for properties on Yas Island.

The Abu Dhabi developer also launched apartments at Grove District on Abu Dhabi's Saadiyat Island this year.

Other major projects in the capital include Reem Hills on Reem Island, Bloom Living, close to Abu Dhabi International Airport, and the second phase of Imkan's Riviera development on the coast between Abu Dhabi and Dubai.

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UAE megaprojects 2022: 30 new developments in Dubai, Abu Dhabi and Northern Emirates

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”