Dubai: Abu Dhabi’s Aldar Properties will finally get to make its entry in Dubai.
The mega-developer has aligned with Dubai Holding, which holds a Dh130 billion portfolio of assets, in a ‘binding’ joint venture agreement to develop ‘exciting living experiences across prime locations in Dubai’.
The plan is to build more than 9,000 residential units in the suburbs, with the launches being planned this year itself. The site of the new builds will be along along the E311 and E611 corridors.
The agreement marks Aldar’s entry into ‘Dubai’s high performing real estate market’ as part of a broad expansion into new markets. Aldar had in the recent past bought assets and land in Ras Al Khaimah as it widened its role beyond Abu Dhabi. In the recent past, it had spoken about a potential entry into Saudi Arabia – and that Dubai was always a possibility.
Now, that possibility has been brought into direct play. (In early trading on ADX, Aldar’s stock is up 1.83 per cent to Dh4.4, with the traded value past the Dh27 million inside of the first 30 minutes of the market opening.)
The alliance will create new communities at three locations with a combined area of 38.2 million square feet (3.55 million square metres).
These will be in the suburban ‘heart of Dubai’ – along the E311 and E611 corridors and close to several existing residential communities. The area allotted for development represent ‘some of the last remaining vacant and undeveloped plots of land in this established and popular corridor’.
“We continue to generate expansion opportunities, which are driving new revenue streams and creating greater shareholder value,” said Talal Al Dhiyebi, Group CEO at Aldar Properties. “Our entry to Dubai is a milestone moment for Aldar, and we are excited about our long-term growth potential in the emirate alongside Dubai Holding, a prominent and strategic partner.”
The Aldar-Dubai Holding alliance will bring:
- More than 9,000 residential units in communities along Dubai’s E311 and E611 corridors.
- These will be supported by retail and community facilities with a total gross floor area of 19.3 million square feet.
- Initial focus will be on building sprawling communities in three locations across an area of 38.2 million square feet.
Aldar had, in fact, made an earlier push into Dubai, through a partnership with Emaar. But that was later placed on with Dubai Holding providing the land, Aldar will be responsible for the ‘full development cycle’, and that will include concept design, sales, delivery, and management of the projects. “We will continue to explore further expansion and investment opportunities in Dubai, reflecting our belief in the market’s maturing real estate fundamentals and our confidence in its status as a growing and lucrative market,” said Al Dhiyebi. And “where long-term demand from end-users and investors is well supported by a diversified economy, proactive government policy, and population growth.”
The planned communities will bring a ‘fresh and unique offering’, thus offering a chance for Aldar to target a ‘wider and differentiated customer base’.
Large canvas community-themed projects in Dubai continue to be successful with buyers, with recent launches from Emaar, Damac, Majid Al Futtaim, Sobha and Azizi.
“With the favourable economic environment in Dubai and the upward trend in its real estate sector, we are well positioned to attract international investors through such strategic partnerships,” said Amit Kaushal, Group CEO, Dubai Holding. “The JV with Aldar demonstrates Dubai Holding’s unparalleled track record of being the strategic ‘partner of choice’ for strong regional and institutional investors.
“We will continue to unlock opportunities that position Dubai as a leading destination for investments from across the globe.”
Article originally published on gulfnews.com