Aldar, Abu Dhabi’s biggest listed developer, and Sharjah-based Arada have teamed up to build new housing projects on Yas Island and at Seih Sdeirah in Abu Dhabi, representing a combined value of about Dh15 billion ($4 billion).
The partnership involves a masterplan joint venture to create a large-scale mixed-use community at Seih Sdeirah on the Abu Dhabi-Dubai border and Arada’s acquisition of three residential plots on Yas Island.
The new developments will mark Arada’s entry into Abu Dhabi as it continues to expand in the UAE.
“The opportunities on Yas Island and at Seih Sdeirah establish a strong foundation for our collaboration with Arada, and we see significant potential to build on the partnership across sectors and geographies in the UAE,” said Talal Al Dhiyebi, group chief executive of Aldar.
At Seih Sdeirah, Aldar and Arada will build a mixed-use community covering up to 1.5 million square metres of land. It will feature villas and townhouses, as well as retail and recreational amenities. Arada will lead development and construction management, while Aldar and Arada will jointly lead branding and selling the community.
On Yas Island, Arada has acquired three plots, two that are canal-facing sites, with a combined plot area of more than 27,500 sq m.
More collaboration
The two companies are planning to explore further collaboration across sectors and asset classes in the UAE, they said in a statement.
“This is the beginning of what we intend to be a long and productive collaboration, and we look forward to what we will build together,” said Ahmed Alkhoshaibi, group chief executive of Arada.
Arada, a joint venture between KBW Investments – a company controlled by Saudi Arabia’s Prince Khaled bin Alwaleed – and Sharjah-based Basma Group, has been rapidly expanding in the UAE as well as in overseas markets such as the UK, Australia and Syria.
This month, the developer revealed plans to build a $7 billion "UAE-style" mixed-use real estate project in Syria’s capital Damascus that will have 11,000 homes, including residential apartments, villas and townhouses, branded residences, 500 hotel rooms and 1,000 serviced apartments.
This follows an announcement of a Dh5 billion new development in Queensland, Australia last month, with close to 1,000 homes, ranging from one to three bedrooms across two towers connected by a landscaped podium.
Arada is also creating new projects in London after buying Regal, a UK's mixed-use developer, last year.
Globally, Arada has projects valued at Dh130 billion and a portfolio of more than 55,000 homes across the UAE, the UK and Australia.
Aldar, meanwhile, has unveiled a number of new developments in Abu Dhabi this year, including Marsa Al Saadiyat, a Dh100 billion waterfront destination in Saadiyat Island, in July.
This month, it also launched Yas Riva Reserve, a gated villa community in Yas Island, with 292 four, five and six-bedroom villas.
Aldar reported strong second-quarter financial results, with profit and revenue rising for the three-month period to the end of June. Net profit rose 10 per cent annually to Dh2.16 billion, with revenue and rental income increasing by 5 per cent year-on-year to Dh8.1 billion.
The company's group development backlog reached Dh71.6 billion at the end of June, including Dh59.9 billion in the UAE, which is expected to drive revenue recognition over the next two to three years, it said.
The latest move comes as Abu Dhabi’s property market continues to perform strongly despite uncertainty stemming from the Iran war.
Total real estate transactions in the first six months rose 112 per cent year-on-year to hit Dh117 billion, with transaction volumes rising 61.7 per cent to 16,838, according to the Abu Dhabi Real Estate Centre.
