Abu Dhabi government, Aldar to exchange nearly 6km2 land assets
Aldar to receive land in Saadiyat Cultural District and Mina Zayed, government to get land in Al Raha Beach West, Lulu Island
Abu Dhabi Securities Exchange-listed (ADX) real estate developer Aldar Properties and the Government of Abu Dhabi will exchange nearly 6km2 of developable gross floor area (GFA) of land under a strategic land exchange transaction.
The transaction will witness a redistribution of land resources that is suitable for development.
In a stock market filing, the developer, which recently launched the $2.2bn (AED8bn) 24.2ha mixed-use community Saadiyat Grove in the UAE capital, said: “The transaction, which will be implemented from December 2019, involves the exchange of land in the Emirate of Abu Dhabi, with no transfer of funds required.”
According to the UAE’s state-held news agency, Wam, the agreement has been implemented by the Abu Dhabi Department of Municipalities and Transport (DMT) in line with the government’s move to collaborate with private sector to manage real estate supply.
Abu Dhabi Government and Aldar Properties have agreed on an exchange of land assets with total developable gross floor aeea (GFA) of approximately 6 million sqm in a transaction that redistributes developable land resources in line with both parties' strategic priorities. pic.twitter.com/c6wYueo5vA— Abu Dhabi Government Media Office (@admediaoffice) December 25, 2019
As part of the transaction, Aldar will receive Aldar infrastructure enabled land with GFA of approximately 3km2, which will be equally split between the areas of Saadiyat Cultural District and Mina Zayed.
Meanwhile, the Government of Abu Dhabi will receive lands with a comparable GFA in Al Raha Beach West, Lulu Island, in addition to land plots within Abu Dhabi island in non-investment zones.
Speaking about the transaction, chief executive officer of Aldar Properties, Talal Al Dhiyebi said: “This strategic land swap is a win-win deal for both parties. Aldar Properties will receive infrastructure-enabled land with high potential for development in the coming years, as we consolidate our development focus on our key destinations, in particular Saadiyat Island.
“Meanwhile, the Government of Abu Dhabi receives assets that match its long-term strategic objectives.”
“This adds to the careful planning and management of real estate supply, which is key to sustainable development of the market as Abu Dhabi continues to build a vibrant and diversified and sustainable economy,” Al Dhiyebi added.