Abu Dhabi Airports Freezone (ADAFZ) inked a musataha agreement with Radius Group to develop a AED 320 mn warehouse complex in the Al Falah District, according to a statement. The project, spanning 140k square meters, will offer over 90k square meters of premium warehouse space and is expected to be completed in two years.

Why is this important? ADAFZ is looking to meet the rising demand for high-quality light industrial space in the UAE to boost trade and FDI flows. Radius Group will install cutting-edge climate control systems, energy-efficient light, security features, and adaptable storage solutions at the warehouse sites.

ADVISORS- Knight Frank Mena’s Industrial & Logistics division advised Radius on the land lease process.

Rising demand: Abu Dhabi’s warehouse market has been absorbing spillover demand from Dubai and is accelerating the development of new leasable spaces. ADAFZ plans to develop new warehouses on an area of over six square km at Al Falah Free Zone. The first phase of the project includes a 16k sqm temperature-controlled Grade A warehouse, built within a 30k sqm plot, slated for delivery in 2025.

Other projects in the pipeline: Radius Group partnered with Knight Frank MENA to launch the Radius City Logistics project at Dubai Investment Park 2 back in July. Commissioning and tenant access for the project — Radius Group’s first in the UAE — is expected by August 2025.

About Radius Group: Founded in 2006, Radius Group is a global development company specialized in warehousing and industrial real estate. The firm, which opened its Dubai office in 2023, was the first developer in its market to obtain BREEAM and LEED certifications.

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