Emirates News Agency – Aldar Investment launches Logistics Real Estate Vertical through acquisition of Abu Dhabi Business Hub
ABU DHABI, 26th April, 2022 (WAM) — Aldar Investment has completed the acquisition of a 70% stake in Abu Dhabi Business Hub, valuing the company at over AED500 million, with the remaining 30% held by a strategic partner.
The acquisition marks the creation of Aldar Logistics, the company’s new logistics real estate vertical, which will primarily focus on the United Arab Emirates, potentially expanding to Saudi Arabia and Egypt, it said. a press release from Aldar on Tuesday.
After completing the Abu Dhabi Business Hub transaction, Aldar Investment intends to evaluate further acquisition opportunities through the newly created logistics vertical as it seeks to increase its allocation in the sector.
Abu Dhabi Business Hub is one of the leading developers and managers of real estate in Abu Dhabi and owns a strategically located warehousing, industrial and office complex in Industrial City Abu Dhabi, which has a total net leasable area of approximately 166 000 m². It includes three office buildings, 132,000 m² of warehouses and undeveloped industrial land for future expansion. Existing logistics facilities are more than 90% occupied.
The office building, together with the undeveloped land, offers significant potential for future growth.
Jassem Busaibe, Managing Director of Aldar Investment, said: “We see strong potential for expansion in warehousing and logistics property in the region, a segment which has strong fundamentals driven by infrastructure development and the growth of the digital economy. The addition of active logistics is immediately profitable for our diversified real estate portfolio and further improves its risk profile.
“As a major institutional investor, we are also uniquely positioned to drive revenue growth by deploying an active approach to asset management. This includes investing in digital technology and automation to ensure that assets that we acquire meet the changing needs of tenants and remain future proof.”
The growth of the UAE’s logistics sector is driven by substantial investment in transport and infrastructure, accelerated by the series of development and economic initiatives “Projects of 50” aimed at ensuring that the country becomes a hub globally in all sectors.
The plans include an AED50 billion investment in a rail network for freight and passenger transport across the UAE, which builds on the first phase of Etihad Rail. Abu Dhabi is also investing significantly in ports and integrated industrial zones, including Khalifa Abu Dhabi Industrial Zone (KIZAD) and Abu Dhabi Industrial City (ICAD).
Aldar Investment is also responsible for Aldar Investment Properties (AIP), the region’s largest institutional grade real estate platform, which will now welcome logistics real estate as an asset class. AIP is rated Baa1 by Moody’s, the highest credit rating for a non-governmental company in the region, the press release said.