The purchase of the 25-storey prime Grade A commercial office property on Al Maryah Island follows the recent acquisition of four commercial towers from Mubadala in July 2022 by Aldar Properties at Abu Dhabi Global Market, the emirate's international financial centre.
The deal strengthens the partnership between the two companies and "reflects Mubadala’s collaborative approach to driving the growth of Abu Dhabi’s real estate market and provides Aldar with control of all Grade A office space", the companies said in a statement on Wednesday.
Aldar will hold a controlling stake with 60 per cent ownership and Mubadala will retain a 40 per cent stake. Aldar and Mubadala will also take ownership of the car park, with more than 1,000 spaces.
Aldar Investment Properties, the region’s largest institutional-class real estate platform, will manage the tower, which is next to Aldar’s four commercial towers at ADGM, boosting its total net leasable area across its portfolio to two million square metres.
Demand for Grade A office space in Abu Dhabi continues to grow, with occupancy on ADGM soaring to 90 per cent across the four office towers acquired this year, said Jassem Saleh Busaibe, chief executive at Aldar Investment.
"The addition of Al Maryah Tower to our commercial portfolio allows us to meet this growing demand head on, while also building scale and driving the efficiency of our recurring income platform,” Mr Busaibe said.
The transaction brings Aldar’s total capital investment into recurring income assets year to date to Dh7.4 billion ($2 billion).
The developer behind Abu Dhabi's Formula One circuit and other big developments in the emirate, Aldar is looking to expand both its footprint and portfolio of assets. The property market in the UAE bounced back strongly from the pandemic-driven slow-down in 2021 and the trend has continued this year as the Arab world's second-largest economy remains on a strong growth trajectory.
The acquisition builds upon Mubadala’s commitment to the growth and advancement of Abu Dhabi’s real estate market, said Khalifa Al Romaithi, executive director of the UAE real estate unit at Mubadala’s UAE Investments platform.
"Mubadala is the master developer of Al Maryah Island, and we are confident in Aldar as the real estate champion with the right operational expertise to position ADGM and Al Maryah Island as the most desirable destination in the region for business, leisure, and entertainment,” Mr Al Romaithi said.
The first tenants will start moving into Al Maryah Tower in 2023.
The tower is next to to ADGM, Cleveland Clinic, Galleria Mall and well as several hospitality assets.
There are plans to build a bridge connecting the tower to Galleria Mall, the companies said in a statement.