Aldar invests $272m to expand logistics business

Reuters

Aldar Properties, Abu Dhabi’s largest developer, will invest AED 1 billion ($272.27 million) to expand its logistics real estate business in Abu Dhabi and Dubai.

The investment includes acquiring operational assets and the development of ready-to-lease and build-to-suit options due to strong demand for Grade A logistics facilities.

The move will increase Aldar’s gross leasable area (GLA) in the logistics sector to more than 400,000 sq m.

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As its first logistics acquisition in Dubai, Aldar has purchased 7 Central logistics hub and an adjacent plot in Dubai Investments Park that will double the GLA of 19,000 sq m once completed.

In addition, the developer will build 233,000 sq m of new Grade A logistics facilities across the UAE. This includes single-tenanted facilities and logistics parks in Dubai, totaling 200,000 sq m of GLA that will be developed in partnership with established logistics real estate players.

The company also plans a 33,000 sq m GLA expansion of the Abu Dhabi Business Hub, which was acquired in 2022. The 132,000 sq m ADBH warehouse portfolio is fully leased to diverse institutional tenants, including Etihad, Mubadala and Twofour54.

“Logistics is becoming an important asset class for Aldar,” said group CEO Talal Al Dhiyebi.

“We are experiencing particularly strong demand for high-grade facilities in the UAE, driven by robust intra-regional trade, high-quality infrastructure, and an expanding digital economy,” he added.