Dubai South and Aldar to work together

Dubai Media Office

The state developer Dubai South and the Abu Dhabi-listed Aldar Properties will jointly develop facilities in Dubai South’s logistics district.

The new joint venture will offer build-to-lease and build-to-suit facilities.

Aldar will lead the design, development and delivery of the new facilities, starting with a Grade A logistics facility with 24,000sq m of gross floor area.

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The plot, adjacent to global brands including Amazon, Noon and DHL, and close to Al Maktoum International Airport, will offer dual customs clearance.

The first facility is expected to be completed by the end of 2024. It will be followed by more developments catering for third-party logistics, e-commerce, and retail tenants.

The projects being developed with Dubai South form part of Aldar’s AED1 billion ($272.26 million) investment in logistics real estate, which includes the development of other build-to-suit and build-to-lease projects across the UAE and the acquisition of 7 Central Logistics Hub and an adjacent plot in Dubai Investments Park.

The collaboration between Dubai South and Aldar “will capitalise on the UAE’s ongoing investment in infrastructure development, growing digital economy, and increasing demand for delivery services, with investment-grade logistics assets that meet and exceed international tenant standards,” said Talal Al Dhiyebi, Aldar’s group CEO.

Dubai South is an urban master development focusing on aviation and logistics.

Earlier this month, Aldar’s chief finance and sustainability officer, Faisal Falaknaz, said the developer was on track to launch its second master plan in Dubai in the second quarter of this year, and the third master plan in the second half of 2024.

The developer already has a joint venture in Dubai with Dubai Holding, the investment vehicle of Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum. Haven, Aldar’s first Dubai project, was launched in the last quarter of 2023.