Aldar Properties and Mubadala Investment Company have signed heads of terms to develop commercial assets in Al Maryah Island, Abu Dhabi, which will be located within the capital’s award-winning international financial centre and free zone Abu Dhabi Global Market (ADGM).
The joint venture once finalised will contribute to ADGM’s thriving ecosystem, providing capacity for more businesses to operate from Al Maryah Island. It follows Aldar’s acquisition of the four commercial towers at ADGM from Mubadala and a subsequent deal between the two parties to partner in the acquisition of Al Maryah Tower, both of which were completed in 2022.
The partnership is a testament to the long-standing ambition of both Aldar and Mubadala to drive growth in Abu Dhabi’s real estate market and to play a pivotal role in developing the commercial office offering on Al Maryah Island, which continues to experience a surge in demand.
As a result of Aldar’s active asset management and the increased leasing activity, office leasing occupancy of the four ADGM office towers has reached 96 percent.
Aldar will own a 60 percent stake in the joint venture, with Mubadala holding the remaining 40 percent. Upon completion of the initial office tower’s construction, which is expected by the end of 2026, the property will be managed by Aldar Investment, which currently houses over AED32 billion of Assets Under Management.
The office tower will have a total net leasable area of 63,000 sqm and aims to be LEED Gold certified. It will offer a varied mix of micro-office, multi-tenanted, and single-tenanted floors. The addition of the new tower will bring Aldar Investment’s total net leasable area of commercial office space to over 400,000 sqm.
Jassem Saleh Busaibe, Chief Executive Officer at Aldar Investment, said, “Through our ongoing management and successful leasing programme of the four ADGM office towers, we continue to see considerable demand for Grade A office space on Al Maryah Island. Through a phased approach, the joint venture will continue to increase the supply of prime office space on the island to ensure the ADGM freezone grows from strength to strength as a financial centre of global significance. The first project enables us to take the necessary steps to satisfy the current pent-up demand, with plans for more to come.”
Khalifa Al Romaithi, Executive Director of the UAE Real Estate at Mubadala Investment Company, said that Al Maryah Island is a one-stop destination that provides unrivalled connectivity for people to work, live, shop, and play. “Through this joint venture with Aldar, we are solidifying our commitment to enhance the business ecosystem and attract prime partners to Al Maryah Island.”
