Shares in Aldar and Emaar Properties jumped on Wednesday, as further details emerged about the first projects to be developed under the Dh30 billion strategic partnership signed on Tuesday between the UAE’s two largest real estate developers.
Aldar shares, listed on the Abu Dhabi Securities Exchange, rose by as much as 6.5 per cent to a seven-week intraday high in the morning session, before slipping back to close up 2.8 per cent Dh2.22. Dubai-listed Emaar rose as much as 3 per cent, hitting a ten-day intraday high, eventually closing up 2.2 per cent.
The developers on Tuesday afternoon announced a strategic partnership “to develop the world’s next era of iconic destinations,” with a targeted Dh30 billion national and international development pipeline.
The agreement, signed on Tuesday by Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, is by far the biggest collaboration between developers from different emirates.
The alliance will initially focus on two UAE-based projects, Saadiyat Grove in Abu Dhabi and Emaar Beachfront in Dubai, the companies said in stock exchange statements on Wednesday.
Saadiyat Grove, which is set to open in 2021, is a mixed-use development that will feature close to 2,000 residential units, two world-class hotels, 400 serviced apartments and 130,000 square metres of “experiential lifestyle and retail space”, designed with a focus on the lifestyles of the future and millennials.
Emaar Beachfront, a private island situated between Dubai’s Jumeirah Beach Residence and Palm Jumeirah, will consist of approximately 7,000 residential units with access to a 1.5 km private beach.
Dubai and Abu Dhabi property markets have slowed in recent years in the wake of a three-year oil slump, that appears to have come to an end with the rebound in energy markets and Brent rising to above US$60 a barrel. A rising supply of residential developments has also contributed to a slide in sale prices and rents which has weighed down on the share price of some developers.