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Thursday, February 22, 2024

AL DAR expand its investment in Real estate and logistics

Aldar Properties has recently unveiled plans to invest an additional AED 1 billion in the expansion of its logistics real estate business across Dubai and Abu Dhabi. This move follows the company’s initial foray into the logistics sector in 2022 through the majority acquisition of Abu Dhabi Business Hub (ADBH). The latest investment encompasses the acquisition of operational assets and the development of ready-to-lease and build-to-suit options, driven by a surge in demand for top-tier logistics facilities.

In a significant step, Aldar has acquired 7 Central logistics hubs and an adjacent plot in Dubai, marking its first logistics acquisition in the city. The development of these assets is expected to nearly double the current gross leasable area (GLA) from 19,000 sqm. The strategic location of the facility in Dubai Investments Park, one of the city’s well-established industrial areas, adds to its appeal.

Aldar’s expansion strategy also includes the construction of 233,000 sqm of new Grade A logistics facilities across the UAE. This involves the development of 200,000 sqm of GLA in partnership with established logistics real estate players, comprising single-tenanted facilities and logistics parks in Dubai. Additionally, there is a plan for a 33,000 sqm GLA expansion of the company’s premium logistics facility, ADBH, in Abu Dhabi.

The ADBH warehouse portfolio, currently fully leased at its 132,000 sqm capacity, boasts diverse institutional tenants such as 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. He noted the increasing significance of logistics as an asset class for Aldar, driven by robust intra-regional trade, high-quality infrastructure, and a growing digital economy.

The surge in demand for high-grade logistics facilities in the UAE is attributed to the country’s substantial investment in transportation and infrastructure. Aldar is responding to this demand with a focus on developing various logistics facilities, including supply chain and fulfillment warehouses, last-mile centers, single-tenanted facilities, and larger-scale logistics parks. The tenants targeted span various sectors, with a primary focus on third-party logistics (3PL), e-commerce, and retail.

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