Aldar, Arada ink AED 15B partnership to develop Abu Dhabi projects

A side view from the signing of the agreement

ADX-listed Aldar Properties announced it has entered into a strategic partnership with Arada, covering opportunities to develop projects on Yas Island and Saih Al Sedira in Abu Dhabi, with a total value of nearly AED 15 billion.

According to a company statement, the initial agreements include establishing a joint venture with Arada to develop a large-scale, mixed-use master planned community in Saih Al Sedira, on the border between Abu Dhabi and Dubai. The deal also includes Arada acquiring three land plots from Aldar on Yas Island, to develop new residential communities.

The partnership marks Arada’s first entry into the Abu Dhabi real estate development market. This agreement is the first phase of a strategic partnership that both companies intend to expand in the future to include other sectors, asset classes, and locations across the UAE.

The two partners will collaborate on developing the new community, which will span up to 1.5 million square meters, and, according to the initial concept, will feature villas and townhouses as well as retail and entertainment facilities.

Arada will oversee project development and construction, while both companies will work together to shape the project's brand identity and sale of its units.

On Yas Island, Arada acquired three land parcels from Aldar Properties, including two canal-facing plots, to develop new residential projects.

The total area of the three plots exceeds 27,500 square meters, with a gross floor area approaching 130,000 square meters.

Commenting on the agreement, Talal Al Dhiyebi, Group CEO of Aldar, said the available opportunities in Yas Island and Saih Al Sedira provide a foundation for the partnership between the two companies, highlighting potential to expand the scope of the partnership in the future to cover multiple sectors and locations across the UAE.