Aldar Investment launches logistics real estate vertical

Abu Dhabi-based real estate investment platform, Aldar Investment, has acquired a 70 per cent equity interest in Abu Dhabi Business Hub, valuing the company at more than Dhs500m. The remaining 30 per cent is owned by a strategic partner. With this acquisition, the company has launched Aldar Logistics, a new logistics real estate vertical, which will focus primarily on the UAE, with the potential to expand into Saudi Arabia and Egypt.

Aldar Investment also intends to assess further acquisition opportunities through this vertical.

Abu Dhabi Business Hub owns a warehousing, industrial and office complex in Industrial City Abu Dhabi, with a total net lettable area of around 166,000 sq m. It includes three office buildings, 132,000 sq m of warehouses, and undeveloped industrial land plots for future expansion.

The existing logistics facilities are over 90 per cent occupied, featuring long-term leases with tenants, including Spinneys, ZonesCorp and Twofour54. The office block together with the undeveloped land plots offer potential for further growth.

Jassem Busaibe, CEO at Aldar Investment, said: “We see strong potential for expansion in warehousing and logistics real estate in the region, a segment which has robust fundamentals driven by infrastructure development and growth of the digital economy.

“The addition of logistics assets is immediately yield-accretive to our diversified real estate portfolio and further enhances its risk profile. As a major institutional investor, we are also uniquely placed to drive income growth by deploying an active approach to asset management. This includes investing in digital technology and automation, to ensure that the assets we acquire serve the evolving needs of tenants and remain future proof.”

Aldar Investment is also responsible for Aldar Investment Properties, the region’s largest institutional-class real estate platform

In other news, Aldar acquired the 27,000 sq m Al Hamra Mall in Ras Al Khaimah from its developers Al Hamra for Dhs410m. Undertaken through Aldar Investments, it is Aldar’s first project within Ras Al Khaimah.

Read: Aldar Properties enters Ras Al Khaimah with Dhs410m acquisition of Al Hamra Mall

The investment division also secured the 715-key all-inclusive Rixos Bab Al Bahr hotel in Ras Al Khaimah (RAK).

Read: Aldar Properties acquires Rixos Bab Al Bahr for Dhs770m, takes total investment in RAK to Dhs1.5bn