Arcapita buys 285 luxury apartments at Abu Dhabi’s Saadiyat Beach Residences complex
Mubadala Development has sold the first phase of its Saadiyat Beach Residences apartment complex on Saadiyat Island to Bahrain-based alternative investment fund Arcapita.
The complex of three low-rise residential buildings containing 285 apartments is situated within a gated community and is currently leased to Saadiyat Island’s master developer, Tourism Development & Investment Company.
Mohammed Chowdhury, the managing director at Arcapita, declined to comment on a reported sale price of $200 million, citing confidentiality agreements signed with Mubadala.
However, he said that the deal was an off-market transaction which had been generated as a result of an existing relationship between the organisations.
Arcapita already owns property investments in the UAE, including a joint venture at Dubai Sports City that has developed about 1,000 villas at Victory Heights overlooking the Ernie Els golf course, but this is its first property investment in Abu Dhabi.
Mr Chowdhury said that Saadiyat Beach Residences appealed for a number of factors.
“It’s at the high end of the market in Abu Dhabi, and there is a limited supply at Saadiyat.
“It’s been master-planned, and it’s hard for people to build similar properties in that area. So rents should hold up.”
He also said that Abu Dhabi offered more secure long-term rental prospects than Dubai, where the market is more volatile.
Saadiyat is a 27 square kilometre island that already features a number of five-star hotels and resorts, a beach club, golf course and leisure and retail development.
The first of three museums within the island’s cultural district, the Louvre Abu Dhabi, is scheduled for completion by the end of this year.
Since the first phase of Saadiyat Beach Residences was completed in 2013, TDIC has launched two further phases of development.
The second phase contains 82 villas and townhouses.
The third phase, which was due to complete last month, contains 77 four- and five-bed villas.
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Updated: July 14, 2015 04:00 AM