Investment sees Aldar expand its logistics business in Abu Dhabi and establish presence in Dubai
Aldar Properties is investing a further Dh1 billion 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.
Marking its first logistics acquisition in Dubai, Aldar has bought the 7 Central logistics hub 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 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, totalling 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.
Talal Al Dhiyebi, group chief executive officer of Aldar Properties
Talal Al Dhiyebi, the CEO of Aldar Properties, emphasized the significance of diversification in assets and geography as fundamental principles of their expansion plan. He highlighted the growing importance of logistics as a key asset class for Aldar, attributing the heightened demand for top-tier facilities in the UAE to robust intra-regional trade, superior infrastructure, and the burgeoning digital economy. Al Dhiyebi expressed Aldar’s strategic position to leverage this growth, utilizing a distinctive combination of development expertise, balance sheet investment, and asset management to generate substantial value.
The expansion of the logistics industry in the UAE is fueled by significant investments in transportation and infrastructure, aimed at fostering economic diversification. Aldar is witnessing a surge in interest for constructing various logistics facilities, encompassing supply chain and fulfillment warehouses, as well as last-mile centers. These developments include both individual tenant facilities and more extensive logistics parks. Occupants hail from diverse sectors, with a predominant emphasis on third-party logistics (3PL), e-Commerce.
Refernce source : khaleejtimes.com
