Abu Dhabi’s leading real estate developer, Aldar Properties, has announced a significant investment of Dh1 billion to bolster its logistics real estate sector in Dubai and Abu Dhabi, marking a strategic expansion in a category the developer deems high priority for future growth.
In a landmark move, Aldar has made its first logistics-related acquisition in Dubai, purchasing the 7 Central logistics hub and an adjacent plot at Dubai Investments Park (DIP). This acquisition, from Seven Seas Steel Industries LLC, marks a crucial step in Aldar’s expansion strategy. The current gross leasable area (GLA) of the facility is 19,000 square meters, and the development of the adjacent plot is set to nearly double this capacity.
This venture follows Aldar’s initial entry into the Dubai market last year, which saw the launch of the first of three planned residential communities. These initial offerings were met with immediate success, selling out instantly. Building on this momentum, Aldar is also exploring joint ventures to further extend its logistics real estate portfolio in Dubai.
The company’s foray into logistics real estate began in 2022 with a majority stake acquisition in Abu Dhabi Business Hub (ADBH). The latest investment includes both operational assets and the development of ready-to-lease and build-to-suit options for Grade A logistics facilities.
Talal Al Dhiyebi, Group CEO of Aldar Properties, emphasized the growing demand for high-grade logistics facilities in the UAE. “The robust intra-regional trade, high-quality infrastructure, and expanding digital economy are driving this demand,” he said. “Aldar is strategically poised to capitalize on this growth, combining our expertise in development, balance-sheet investment, and asset management.”
For Dubai Investments Park, already a significant commercial real estate hub, Aldar’s entrance is expected to increase its market traction. Industry analysts believe that Aldar’s presence could lead to more investment activities, noting that greenfield areas within DIP already command a premium over the market average.
The logistics and warehousing sector in Dubai and the UAE has experienced three years of high demand, a trend that is expected to continue. Aldar’s plans include the development of 233,000 square meters of new Grade A logistics facilities across the UAE. This expansion encompasses single-tenant facilities and logistics parks in Dubai, amounting to 200,000 square meters of GLA in partnership with established logistics real estate players.
Additionally, Aldar will expand the Abu Dhabi Business Hub by 33,000 square meters. The current warehouse portfolio of the hub, fully leased at 132,000 square meters, accommodates tenants such as Etihad, Mubadala, and Twofour54. This expansion is a clear indicator of Aldar’s commitment to strengthening its footprint in the logistics real estate sector, both in Dubai and Abu Dhabi.
