Aldar Properties, Abu Dhabi’s biggest listed developer, has acquired a residential development in Dubai for Dh1.1 billion ($300 million), as it continues to expand its rental portfolio across the Emirates.
The deal with SRG for its Dubai Studio City development is aimed at strengthening Aldar’s recurring revenue streams, the company said in a stock exchange filing to Abu Dhabi Securities Exchange, where its shares are traded.
The acquisition highlights Aldar’s growing focus on building stable long-term rental income in Dubai, where strong population growth and rising housing demand are attracting institutional investors to the emirate’s residential property market.
Targeted for completion in 2028, the development is spread across six mid-rise buildings featuring 312 residential units with a mix of one, two and three-bedroom homes and duplex units.
It will also have a community mall with a mix of retail, recreational, and food-and-beverage outlets, as well as 16,000 square metres of park area.
“Dubai is a priority growth market for Aldar, and this acquisition reflects our belief in the city’s residential market and the central role that institutionally owned, professionally managed rental housing plays in meeting the needs of a growing population,” said Jassem Busaibe, chief executive of Aldar Investment.
Aldar Investment’s recurring income portfolio now spans residential, commercial, logistics and mixed-use assets, including a joint venture with Expo City Dubai.
It is also investing in a commercial tower in DIFC, a Grade-A high-rise office on Sheikh Zayed Road, and logistics assets in National Industries Park and Dubai South.
The Abu Dhabi property company is also jointly developing three master-planned residential communities in Dubai with Dubai Holding, as part of the emirate’s 2040 urban development agenda.
Aldar, which reported a 24 per cent jump in first-quarter net income, is not only launching new residential-for-rent communities in the country, it is also acquiring residential and commercial assets despite the Iran war-driven uncertainty in the market.
In Abu Dhabi, Aldar in April announced a Dh2.8 billion project to build 9,000 new affordable homes for rent, as demand for property remains strong in the emirate. The new developments will be built in Mohamed Bin Zayed City and Baniyas, Aldar said in a statement at the time.
Last month, Aldar and Mubadala Investment Company also bought The Link at Masdar City for Dh654 million, as the companies deepen their exposure to Abu Dhabi’s high-demand commercial assets.
