Aldar, Abu Dhabi’s biggest listed developer, has agreed to acquire more than 1,100 homes in Sharjah from Arada for Dh1.1 billion ($290 million), its first real estate investment in the emirate as it expand its income-generating property portfolio.
The forward-purchase agreement covers nine buildings within three residential blocks at Aljada, Arada’s flagship mixed-use development, with delivery scheduled for the fourth quarter of 2029, Aldar said on Thursday. The transaction will expand Aldar’s develop-to-hold pipeline to Dh21 billion.
Aldar said the nine buildings will cater primarily to end users and long-term renters seeking quality housing at accessible price points within an established integrated community.
“Sharjah is a large and growing residential market, and Aljada provides an attractive entry point through one of the emirate’s leading master-planned communities,” Aldar group chief executive Talal Al Dhiyebi said. He added that the investment adds scale to Aldar’s residential-for-rent portfolio.
The investment builds on a Dh15 billion development partnership announced last month by Aldar and Arada, which covers projects in Abu Dhabi, a further expansion of their relationship. The partnership, which marked Arada’s entry into Abu Dhabi, includes a mixed-use community at Seih Sdeirah, on the Abu Dhabi-Dubai border, and three residential plots on Yas Island.
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.
Aldar, meanwhile, plans to launch a major development of villas and townhouses in Dubai by the end of this year as part of the company’s expansion across the UAE. The new project, with an undisclosed value, will be built near Dubai Silicon Oasis, Aldar Development's chief executive Jonathan Emery told The National in an interview in London this week.
The move comes as the UAE property market continues to perform strongly despite uncertainty stemming from the Iran war. The Emirates was ranked as the world’s leading real estate investment destination in a property market league table released in June. Arada’s UAE Property Investment Index – conducted on behalf of the Dubai developer by US-based Penta Group – found that 56 per cent of global investors have serious interest in the UAE’s property market.
The latest acquisition will broaden Aldar’s geographic exposure while adding residential rental assets aimed primarily at end users and long-term tenants seeking housing at accessible price points, the company said.
Arada group chief executive Ahmed Alkhoshaibi said Aldar’s decision to make its first investment in Sharjah at Aljada reflected confidence in both the development and the emirate’s residential market. “To have a developer of Aldar’s calibre and track record choose Aljada as its first investment in the emirate reflects the quality of what we have built here, and the scale of the opportunity that Sharjah represents,” he said.
Aljada spans 2.2 million sq m and is expected to comprise about 25,000 homes at full buildout, with an anticipated gross sales value of Dh35 billion. Residential handovers at the development began in 2021, with more than 8,800 homes delivered across multiple districts, according to the statement. The community also includes schools, hotels, student accommodation, retail space and the Madar family entertainment district.
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Renderings of the planned mall at the Aljada megaproject in Sharjah. Photo: Arada -
Arada said there will be a showpiece water feature and observation tower as part of the mall plans. Photo: Arada -
There will be well-known retail outlets, cafes and restaurants at the mall. Photo: Arada -
Construction of the mall is expected to start in 2024. Photo Arada -
Arada said the mall will have a 'wow' factor. Photo: Arada -
Maher Metraji, senior development director at Arada, is responsible for delivering the project. He said Aljada marks a new era for Sharjah developments. Pawan Singh / The National -
Villas and greenery at Aljada. Pawan Singh / The National -
The Manbat shop at Aljada sells Emirati produce. Pawan Singh / The National -
Residential buildings at Aljada. Pawan Singh / The National -
Nest, the student accommodation of 12 buildings. Pawan Singh / The National -
Sabis International School is the first of three schools to open. Pawan Singh / The National -
Inside the auditorium of the school. Pawan Singh / The National -
A model of the Aljada megaproject. The entire project is set to be complete by 2028. Pawan Singh / The National
Aldar said the acquisition adds to its strategy of expanding its portfolio of income-generating properties, as the developer seeks to diversify its revenue streams.
The Abu Dhabi developer, which recorded strong second-quarter financial results, is expected to hand over more than 3,000 units this year, representing the largest volume since the company’s launch, with the deliveries going up to 4,500 next year, according to Mr Emery.
