(MENAFN- Khaleej Times) Published: Thu 30 Mar 2023, 1:02 PM Aldar Properties and Mubadala Investment Company have signed heads of terms to develop commercial assets on Abu Dhabi's Al Maryah Island, which will be located within Abu Dhabi Global Market (ADGM), the capital's international financial centre and freezone.
The joint venture, once finalised, will contribute to ADGM's ecosystem, providing capacity for more businesses to operate from Al Maryah Island. It follows Aldar's acquisition of the four commercial towers at ADGM from Mubadala and a subsequent deal between the two parties to partner in the acquisition of Al Maryah Tower, both of which were completed in 2022.
The partnership is testament to the long-standing ambition of both Aldar and Mubadala to drive growth in Abu Dhabi's real estate market and to play a pivotal role in developing the commercial office offering on Al Maryah Island, which continues to experience a surge in demand. As a result of Aldar's active asset management and the increased leasing activity, office leasing occupancy of the four ADGM office towers has reached 96 per cent.
Aldar will own a 60 per cent stake in the joint venture, with Mubadala holding the remaining 40 per cent. Upon completion of the initial office tower's construction, which is expected by the end of 2026, the property will be managed by Aldar Investment, which currently houses over Dh32 billion of assets under management. The office tower will have a total net leasable area of 63,000 sqm and aims to be LEED Gold certified. It will offer a varied mix of micro-office, multi-tenanted, and single-tenanted floors. The addition of the new tower will bring Aldar Investment's total net leasable area of commercial office space to over 400,000 sqm.
Jassem Saleh Busaibe, chief executive officer at Aldar Investment, said:“Through our ongoing management and successful leasing programme of the four ADGM office towers, we continue to see considerable demand for Grade A office space on Al Maryah Island. Through a phased approach, the joint venture will continue to increase the supply of prime office space on the island to ensure the ADGM freezone grows from strength to strength as a financial centre of global significance. The first project enables us to take the necessary steps to satisfy the current pent up demand, with plans for more to come.”
Khalifa Al Romaithi, executive director of UAE real estate at Mubadala, commented:“Our joint venture with Aldar represents another milestone in our long-standing partnership and commitment to Al Maryah Island as the capital's premier lifestyle and business destination. Home to ADGM, Al Maryah Island is an international hub for business growth and opportunity in Abu Dhabi, attracting businesses from around the globe. With its world-class offering, Al Maryah Island is a one-stop destination that provides unrivalled connectivity for people to work, live, shop and play. Through this joint venture with Aldar, we are solidifying our commitment to enhance the business ecosystem and attract prime partners to Al Maryah Island.”
The initial office tower will be primely located, benefitting from its proximity to ADGM, Cleveland Clinic, The Galleria Al Maryah Island as well as several hospitality and lifestyle offerings. The tower will benefit from air-conditioned connectivity to Al Maryah Island's wider ecosystem including Al Maryah Tower, The Galleria Al Maryah Island, ADGM Square, Rosewood, Four Seasons, and Cleveland Clinic Abu Dhabi.
Established in October 2015 on Al Maryah Island, Abu Dhabi Global Market (ADGM) is the UAE's capital's fastest-growing and leading international financial centre (IFC). ADGM's business community has continued to flourish exponentially with major regional and international industry players gravitating to the 'capital of capital' – Abu Dhabi and contributing to its rising falcon economy.