Aldar Properties is set to invest AED1 billion ($272.27 million) to expand its logistics real estate presence in Dubai and Abu Dhabi, addressing the rising demand for Grade A logistics facilities in the region.
The leading UAE real estate developer, investor, and asset manager, Aldar, plans to meet this demand by acquiring operational assets and developing ready-to-lease and build-to-suit options.
In its first logistics acquisition in Dubai, Aldar has purchased the 7 Central logistics hub, alongside an adjacent plot, strategically located in Dubai Investments Park. This move is expected to nearly double the current gross leasable area (GLA) from 19,000 to 38,000 square meters.
The company’s development pipeline includes the construction of 233,000 square meters of new Grade A logistics facilities across the UAE. This comprises the development of single-tenanted facilities and logistics parks in Dubai, totaling 200,000 square meters of GLA. Aldar will collaborate with established players in the logistics real estate sector to achieve this.
Furthermore, Aldar plans to expand its Abu Dhabi Business Hub (ADBH), a premium logistics facility, by adding 33,000 square meters of GLA. The ADBH warehouse portfolio is currently fully leased to institutional tenants like Etihad, Mubadala, and Twofour54.
Talal Al Dhiyebi, Group Chief Executive Officer of Aldar Properties, emphasized the importance of asset and geographic diversification in their growth strategy. The company is strategically positioned to capitalize on the strong demand for high-grade logistics facilities in the UAE, driven by robust intra-regional trade, quality infrastructure, and a growing digital economy.
The UAE’s logistics sector growth is supported by substantial investments in transportation and infrastructure, contributing to economic diversification. Aldar is witnessing heightened demand for various types of logistics facilities, catering to tenants in sectors such as third-party logistics (3PL), e-commerce, and retail, including supply chain and fulfillment warehouses, and last-mile centers.
Publish Date: 9 Jan 2024
Source: https://www.arabianbusiness.com/industries/real-estate/aldar-properties-expands-logistics-real-estate-in-dubai-abu-dhabi-with-aed1bn-investment
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