Aldar and Mubadala complete joint venture to create $2.72bn retail platform

Aldar Properties, Abu Dhabi’s biggest listed developer, and Mubadala Investment Company have completed a strategic joint venture to create a Dh10 billion ($2.72 billion) retail platform to support the emirate’s next phase of growth in the retail sector.

The new platform, to be managed by Aldar, will consolidate Yas Mall and The Galleria Luxury Collection, with a total gross leasable area of 260,000 square meters, Aldar said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

The deal was announced by the two companies in September 2024, along with creation of three other joint ventures, including one to own Dh3 billion worth of income-generating real estate assets at Masdar City.

“Together with Mubadala, we are connecting Abu Dhabi’s flagship retail destinations under Aldar’s management and creating a retail champion that will not only elevate the Emirate’s global appeal but also sets a new standard for how luxury retail is curated, experienced and scaled,” Talal Al Dhiyebi, group chief executive of Aldar, said in Tuesday's statement.

The two malls have high occupancy levels, with Yas Mall at 99 per cent and The Galleria Luxury Collection in Al Maryah Island at 92 per cent.

“This partnership is poised to unlock the full potential of Al Maryah Island, driven by the district’s proven success and the growing demand from global businesses and residents,” Bakheet Al Katheeri, chief executive of UAE Investments Platform at Mubadala, said.

In December, the two companies announced a Dh60 billion collaboration to expand Abu Dhabi’s financial district on Al Maryah Island. The deal includes adding office space, housing and retail units.

The companies' other deals in the past few years have included the launch of an investment management platform to connect global institutional investors with property and infrastructure opportunities in the UAE and Gulf region, also in December.

Based in Abu Dhabi's ADGM, Aldar Capital would offer professionally managed funds for institutional investors, including sovereign wealth funds, pension funds, fund of funds, insurance companies and family offices, the two companies said at the time.

Its first fund, which will be launched this year, will have an investment target of $1 billion.

In 2022, Aldar Properties agreed to buy four prime commercial towers, Al Sila, Al Sarab, Al Maqam and Al Khatem, from Mubadala at ADGM in a deal valued at $1.17 billion.