Aldar Properties, a leading real estate developer, investor, and asset manager in the UAE, will invest a further AED1 billion ($272.27 million) to expand its logistics real estate business in Dubai and Abu Dhabi.
Having first entered the logistics sector with the majority acquisition of Abu Dhabi Business Hub (ADBH) in 2022, this new investment includes the acquisition of operational assets as well as the development of ready-to-lease and build-to-suit options in response to strong demand for Grade A logistics facilities, the company said.
Marking its first logistics acquisition in Dubai, Aldar has bought 7 Central logistics hub and an adjacent plot which once developed will almost double the current gross leasable area (GLA) of 19,000 sq m. The facility, which was sold by Seven Seas Steel Industries, is strategically located in Dubai Investments Park, one of Dubai’s most established industrial areas.
The company has also created a healthy development pipeline and will build 233,000 sq m of new Grade A logistics facilities across the UAE. This includes single tenanted facilities and logistics parks in Dubai, totalling 200,000 sq m of GLA that will be developed in partnership with established logistics real estate players, and a 33,000 sq m GLA expansion of the company’s premium logistics facility, ADBH in Abu Dhabi. The ADBH warehouse portfolio is fully leased at its current capacity of 132,000 sq m to diverse institutional tenants, including Etihad, Mubadala and Twofour54.
Talal Al Dhiyebi, Group Chief Executive Officer of Aldar Properties, said: “Asset and geographic diversification are core tenets of our growth strategy, and logistics is becoming an important asset class for Aldar. We are experiencing particularly strong demand for high-grade facilities in the UAE, driven by robust intra-regional trade, high-quality infrastructure, and an expanding digital economy. Aldar is well positioned to capitalise on this growth, deploying a unique blend of expertise in development, balance sheet investment, and asset management to create substantial value.”
Growth of the UAE’s logistics sector is supported by substantial investment into transportation and infrastructure, to support diversification of the economy. Aldar is experiencing a strong demand to develop a range of logistics facilities, including supply chain and fulfilment warehouses to last-mile centres, in the form of single tenanted facilities and larger scale logistics parks, it said.
Aldar’s tenants are in a wide range of sectors, primarily focusing on third-party logistics (3PL), e-Commerce and retail, it added. – TradeArabia News Service
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