{"id":96716,"date":"2024-10-11T00:00:00","date_gmt":"2024-10-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/union-aldar-launch-new-dubai-developments-totaling-aed-2-91-bn\/"},"modified":"2024-10-11T00:00:00","modified_gmt":"2024-10-11T00:00:00","slug":"union-aldar-launch-new-dubai-developments-totaling-aed-2-91-bn","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/10\/11\/union-aldar-launch-new-dubai-developments-totaling-aed-2-91-bn\/","title":{"rendered":"Union + Aldar launch new Dubai developments totaling AED 2.91 bn"},"content":{"rendered":"

Dubai to get two mixed-use developments in Expo City + Motor City: <\/strong>Motor city developer Union Properties launching its AED 1.16 bn Takaya project in Motor City, while Abu Dhabi-based Aldar Properties is working on a mixed-use development worth over AED 1.75 bn in Expo City.<\/p>\n

#1- Dubai-based real estate developer <\/strong>Union Properties<\/a><\/strong> is set to begin work on a AED 2 bn project in <\/strong>Motor City<\/strong> dubbed Takaya, it said in a DFM disclosure (pdf)<\/a>. The developer is investing AED 1.16 bn in the project, according to a separate bourse filing (pdf)<\/a>, with 60% of the payment due within three years of construction and 40% post-handover. <\/p>\n

The details: <\/strong>Takaya is a mixed-use development housing 744 residential units, including studios and one-, two-, and three-bedroom apartments, across 436.2k sqft. The project also features penthouses, townhouses, and commercial spaces, including a 500 meter retail boulevard.<\/p>\n

The project is slated for handover in 4Q 2027<\/strong>, after which it is expected to generate AED 200 mn in net income for Union as of 2025, according to the filing.<\/p>\n

We knew this was coming:<\/strong> Last month<\/a>, Union CEO Amer Khansaheb said the company would invest over AED 6 bn in three Motor City projects over the next 18 months, starting with the Takaya development.<\/p>\n

About the other projects:<\/strong> The second project, also valued at AED 2 bn, includes four towers connected by a podium and 3% retail space, Khansaheb said. The third AED 2 bn project is currently in the design and planning phase.<\/p>\n

Background: <\/strong>Union\u2019s push into Motor City comes after the developer settled debt<\/a> with Emirates NBD and Dubailand that it had accumulated during the 2009 property market correction in February, securing a no-objection certificate from Dubailand to repurpose Motor City land for new projects and reaching a debt settlement of AED 850 mn with Emirates NBD.<\/p>\n

#2- Abu Dhabi real estate developer <\/strong>Aldar Properties<\/a><\/strong> is also introducing a mixed-use <\/strong>development to Dubai\u2019s Expo City<\/strong> beside the Dubai Exhibition Center, under a new joint venture with Expo City Dubai<\/a>, according to an ADX disclosure (pdf)<\/a>. Aldar and Expo City each have a 50% stake in the JV. <\/p>\n

The details: <\/strong>The JV will develop six buildings \u2014 spanning a gross floor area of 103k sqm, and including residential, office, and retail spaces \u2014 at a total cost of over AED 1.75 bn. Aldar will be responsible for managing the project after completion, with the specific handover date not disclosed.<\/p>\n

Expo City is slated for more development work ahead<\/strong>, after Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum approved a new AED 10 bn master plan<\/a> for developing the site earlier this month<\/a>. The plan aims to have Expo City accommodate over 35k residents and 40k professionals.<\/p>\n

This is the latest of many investments in Dubai<\/strong>: Aldar set aside AED 1 bn<\/a> earlier this year to expand its logistics operations in Abu Dhabi and Dubai, and AED 5 bn<\/a> for commercial, retail, and hospitality assets set to open between 2025 and 2027. In July, it also committed AED 1.8 bn<\/a> to scale its commercial presence in key Dubai business districts. <\/p>\n

Aldar is also ramping up efforts to diversify its portfolio: <\/strong>The developer committed AED 1.5 bn<\/a> last month to expand and revamp its hotels in Abu Dhabi and Ras Al Khaimah. Aldar also teamed up with Mubadala<\/a> on four joint ventures to develop and manage real estate in Abu Dhabi worth AED 30 bn. <\/p>\n

MORE ON EXPO CITY-<\/strong> There\u2019s a lot more coming: <\/strong>The city is getting five new districts that can collectively house 35k residents, along with capacity for some 40k workers, Wam<\/a> reports. The plan includes over 4.5k EV charging stations, two fuel stations, and emergency service centers.<\/p>\n

The breakdown: <\/strong><\/p>\n