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March 3, 2024

Aldar pours $272mn into its logistics real estate business

Aldar Properties, the leading real estate developer, investor, and asset manager in the UAE, has announced a further investment of $272 million to expand its logistics real estate business in Dubai and Abu Dhabi.

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.

Marking its first logistics acquisition in Dubai, Aldar has bought 7 Central logistics hubs and an adjacent plot which once developed will almost double the current gross leasable area (GLA) of 19,000 sqm. The facility, which was sold by Seven Seas Steel Industries LLC, is strategically positioned in one of Dubai’s most established industrial areas, Dubai Investments Park.

The company has also created a healthy development pipeline and will build 233,000 sqm of new Grade A logistics facilities across the UAE. This includes single-tenanted facilities and logistics parks in Dubai, totaling 200,000 sqm of GLA that will be developed in partnership with established logistics real estate players, and a 33,000 sqm 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 sqm to diverse institutional tenants, including Etihad, Mubadala and Twofour54.

The growth of the UAE’s logistics sector is supported by substantial investment into transportation and infrastructure, to support the diversification of the economy. Aldar is experiencing strong demand to develop a range of logistics facilities, including supply chain and fulfillment warehouses to last-mile centers, in the form of single-tenanted facilities and larger-scale logistics parks. Tenants are in a wide range of sectors, primarily focusing on third-party logistics (3PL), eCommerce and retail.