Aldar Properties, the leading real estate developer, investor, and asset manager in the UAE, has announced plans to invest an additional AED1 billion ($272.27 million) in expanding its logistics real estate business in Dubai and Abu Dhabi.
The company aims to meet the strong demand for Grade A logistics facilities in the region by acquiring operational assets and developing ready-to-lease and build-to-suit options.
Aldar has made its first logistics acquisition in Dubai by purchasing the 7 Central logistics hub, along with an adjacent plot.
Aldar to construct 233,000 sqm of logistics facilities
This acquisition is expected to almost double the current gross leasable area (GLA) of 19,000 square metres.
The facility, previously owned by Seven Seas Steel Industries LLC, is strategically located in Dubai Investments Park, one of the well-established industrial areas in the city.
Moreover, Aldar has planned an extensive development pipeline, with the construction of 233,000 square metres of new Grade A logistics facilities across the UAE.
This includes the development of single tenanted facilities and logistics parks in Dubai, totaling 200,000 square meters of GLA.
The company will collaborate with established logistics real estate players to accomplish this development.
Additionally, Aldar intends to expand its premium logistics facility, Abu Dhabi Business Hub (ADBH), by 33,000 square meters of GLA.
Currently, the ADBH warehouse portfolio is fully leased at its capacity of 132,000 square meters to diverse institutional tenants, including Etihad, Mubadala, and Twofour54.
“Asset and geographic diversification are core tenets of our growth strategy, and logistics is becoming an important asset class for Aldar. 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. Aldar is well positioned to capitalize on this growth, deploying a unique blend of expertise in development, balance sheet investment, and asset management to create substantial value,” Talal Al Dhiyebi (below), Group Chief Executive Officer of Aldar Properties said.
The growth of the UAE’s logistics sector is supported by significant investments in transportation and infrastructure, contributing to the diversification of the economy.
Aldar is witnessing strong demand for various types of logistics facilities, such as supply chain and fulfillment warehouses, as well as last-mile centers.
These facilities cater to tenants operating in a wide range of sectors, primarily focusing on third-party logistics (3PL), e-commerce, and retail.
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