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The UAE-based real estate investment platform Aldar Investment, a subsidiary of Aldar Properties, has completed the acquisition of a 70 percent equity interest in Abu Dhabi Business Hub, valuing it at more than $500 million, to create a new logistics real estate vertical.
The remaining 30 percent is owned by a strategic partner, Aldar said in a filing on the Abu Dhabi Securities Exchange where its shares are traded.
Once the transaction is complete, the new vertical will look at new acquisitions as it seeks to increase its allocation across the sector. The company has said it plans to spend at least 1.36 billion on acquisitions this year to add to its revenue-generating portfolio. While the new vertical will initially focus on the UAE, it has the potential to expand into Saudi Arabia and Egypt.
Abu Dhabi Business Hub owns a warehousing, industrial, and office complex in Industrial City Abu Dhabi which has a total net leasable area of about 166,000 sqm. The office block together with the undeveloped land plots bring significant potential for further growth, Aldar said.
Earlier this month, Aldar Investment bought Rixos Bab Al Bahr hotel in Ras Al Khaimah in $210 million deal. It also acquired Al Hamra Mall in Ras Al Khaimah in a $111.6 million deal.
(Writing by Brinda Darasha; editing by Seban Scaria)
