Sharjah developer Arada will be investing up to £325 million ($427.7 million) on its latest major acquisition in the UK, and is planning to add 10,000 homes to its UAE pipeline amid an aggressive expansion strategy, its chief executive has said.
Arada acquired an 80 per cent stake in the £2.5 billion Thameside West waterfront development in London's Royal Docks, it said on Monday – its second acquisition in the UK after entering the market less than two months ago.
Funding for developing the land – which was acquired from private developer Keystone – will come from a mix of Arada's equity and banks, Ahmed Alkhoshaibi told The National.
"The land acquisition is going to cost £225 million, mainly covered from the company's equity, then there'll probably be another £100 million worth of additional funding coming from the UAE," he said in an interview.
"Most likely we will fund the entire project by using local or international banks ... we have plenty of options, but we'll decide at that time what is the best option."
The 47-acre (190,200-square-metre) Thameside West is a riverside neighbourhood at the western end of the Royal Docks. It is still in the planning stages, with construction slated to begin in 2027.
At least 5,000 homes are planned to be built, with the first 1,000 expected to be delivered in its first phase. Plans are also being drawn up for schools, shops, spaces for creative industries and two new riverside parks, according to the Royal Docks website.
Arada's latest move follows its acquisition of a 75 per cent stake in UK-based mixed-use developer Regal in September, with an initial commitment of Dh2.5 billion ($680 million) to the London property market.
A number of UAE developers have tapped into the potential of the UK market. Aldar Properties, Abu Dhabi's biggest listed developer, acquired London Square for Dh1.07 billion in 2023, its first acquisition outside the Middle East and North Africa.
In August, Dubai's JA Resorts & Hotels took over the management of two heritage hotels in Scotland – Mar Hall Golf & Spa Resort and The Bruntsfield – marking the home-grown hospitality brand's entry into the UK.
Mr Alkhoshaibi forecasts that, within two years, London and Sydney – Arada's two markets outside the UAE and Saudi Arabia – property transactions and evaluations will "spike", which is "why we've been very quick to acquire strategic locations".
Arada has already said it plans a 30,000-home pipeline in London, while two projects in Sydney are slated to be launched in the first and second quarters of 2026, part of the developers efforts to double deliveries to 10,000 homes in the Australian city, he said.
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The planned mall at the Aljada development in Sharjah will included showpiece water feature and observation tower. Photo: Arada -
Residential buildings at Aljada. Pawan Singh / The National -
East Village, Aljada. Photo: Arada -
Masaar in Sharjah is a fully forested community featuring more than 50,000 trees. Photo: Arada -
The Manbat shop at Aljada sells Emirati produce. Pawan Singh / The National -
Nest, the student accommodation of 12 buildings next to University City in Sharjah. Pawan Singh / The National -
Sabis International School in Aljada is the first of three Arada schools to open. Pawan Singh / The National -
Nasma Central Park in the 5.2-hectare Nasma Residences community in Sharjah features hills plus local and regional flora. Photo: Arada -
Sendian District, the first phase of Masaar development. Photo: Arada -
Masaar has about 13km of woodland cycling and running trails. Photo: Arada -
Arada launched its first project in Dubai, the Dh2 billion ($544.5 million) Jouri Hills development within Jumeirah Golf Estates, at the end of 2022. Photo: Arada -
The Jouri Hills project features 294 high-end villas and town houses. Photo: Arada -
Prices at Armani Beach Residences at The Palm Jumeirah start at Dh21 million. Photo: Arada -
Ahmed Alkhoshaibi, Arada group chief executive said the company's target for 2024 is Dh10 billion in sales. Photo: Arada
The Royal Docks was opened in 1855 and was meant to "relieve London’s crowded and chaotic waterways", according to its website. It was once an industrial area billed as London's gateway to world trade, but is now "one of the UK’s most important regeneration stories", it said.
Also proposed for Thameside West are a new Docklands Light Railway station and river crossing for London – the Silvertown Tunnel – to improve connections between the area and the rest of London, it said.
10,000 new UAE homes and 2028 IPO
In the Gulf, Arada is expected to enter Saudi Arabia "before June" next year, Mr Alkhoshaibi said; he told The National in September that the company is in talks with the Public Investment Fund for potential projects in the kingdom.
But a "big number" is being planned for the UAE: with the continued resilience of the Emirates' real estate sector, Arada is "confident what we will add 10,000 homes to our pipeline in the UAE alone", Mr Alkhoshaibi said.
The company is also in discussions with "authorities, big players and land owners" in Abu Dhabi, and there is "hope" for an acquisition in 2026 in the UAE capital, he said.
Overall, a pipeline of about 25,000 homes is forecast for Arada's portfolio in 2026, he said.
"The market has underlying demand in the UAE and we are very bullish on the Sydney and London markets," he added.
Meanwhile, Arada has onboarded JPMorgan to advise the company on sukuks and convertible bonds, which Mr Alkhoshaibi said is "like one step now towards an IPO" in 2028 or sooner.
He first revealed IPO considerations to The National in February.
"The market's going to be hearing whispers ...we are preparing ourselves potentially, but the likelihood, I would say, is in 2028," Mr Alkhoshaibi.
However, bankers are "pushing me to go earlier because the market is so hot for IPOs, but I don't follow markets in that way", he said.
"I follow ourselves when we are ready ... and I feel that 2028 will be a good time".
