Abu Dhabi’s largest listed developer Aldar Properties has signed a joint venture agreement with Dubai Holding as it seeks to develop new real estate projects across prime locations in Dubai.
The deal marks Aldar’s entry into Dubai’s property sector, as part of the company’s broader expansion into new markets, it said in a filing on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
The move “adds considerable weight” to Aldar’s development pipeline, the Abu Dhabi company said.
The venture will develop new communities in three locations across an area of 3.55 million square metres.
“Our entry to Dubai is a milestone moment for Aldar, and we are excited about our long-term growth potential in the emirate alongside Dubai Holding, a prominent and strategic partner,” said Aldar's group chief executive Talal Al Dhiyebi.
The new communities will be located in the suburban heart of Dubai — along the E311 and E611 corridors, close to several notable residential communities.
They will be on some of the remaining plots of land that are vacant and undeveloped in this popular area, the company said.
The launch of the venture follows Aldar’s recent acquisitions of Al Fahid Island in Abu Dhabi and a new waterfront development in Ras Al Khaimah.
Al Fahid Island, with a gross development value of Dh26 billion, is located between Yas Island and Saadiyat Island. It will feature mangroves and more than 11km of waterfront.
Aldar plans to launch a dozen new projects this year amid the property market recovery and will continue to look for acquisitions to boost its portfolio, Jonathan Emery, chief executive of Aldar Development, told The National in an interview in January.
Major developments announced by the company in the past year include Yas Gate, Saadiyat Lagoons, the Grove District on Saadiyat Island and Louvre Abu Dhabi Residences.
Under its joint venture with Dubai Holding, Aldar will be responsible for the full development cycle, including concept design, sales, delivery and management of the new projects in Dubai.
These developments will start to launch this year and will feature more than 9,000 units consisting of villas, townhouses and apartments supported by retail and community amenities with a total gross floor area of 1.8 million square metres.
Dubai Holding expects the joint venture with Aldar to help both companies to capitalise on the favourable economic environment in Dubai and the upward trend in its property sector.
“We are well positioned to attract international investors through such strategic partnerships that bring new and exciting offerings to the market,” said Amit Kaushal, group chief executive of Dubai Holding.
Aldar projects - in pictures
Aldar expects the collaboration to further support its growth agenda, with the aim of adding scale across its core development and investment property platforms.
“Through the execution of our transformational growth agenda, we continue to generate expansion opportunities, which are driving new revenue streams and creating greater shareholder value,” said Mr Al Dhiyebi.
Last year, Aldar made a number of acquisitions. It teamed up with Abu Dhabi sovereign wealth fund Mubadala Investment Company to acquire Al Maryah Tower, in the UAE capital, in a Dh450 million deal.
It also agreed to buy four prime commercial towers from Mubadala at the Abu Dhabi Global Market, the international financial centre on the capital's Al Maryah Island, in a $1.17 billion deal.
In Ras Al Khaimah, it announced new deals, including the acquisition of DoubleTree Marjan Island, as well as an adjacent beachfront development plot for Dh810 million.
It also bought the Rixos Bab Al Bahr hotel in Ras Al Khaimah in a Dh770 million deal, as well as Al Hamra Mall for $111.6 million.
“We will continue to explore further expansion and investment opportunities in Dubai, reflecting our belief in the market’s maturing real estate fundamentals and our confidence in its status as a growing and lucrative market,” said Mr Al Dhiyebi.