Released on Dated : Feb 26, 2024

Dubai South, the largest major urban development focused on aviation, logistics and real estate, and Aldar Properties (Aldar), the UAE's leading real estate developer, investment and management, have teamed up on a joint venture to develop Grade A logistics facilities within Dubai South's Logistics District.

As part of the partnership, Aldar and Dubai South will collaborate on the development of new leasable and bespoke logistics facilities. Aldar will design, develop and deliver these new assets, starting with the development of a Grade I logistics facility with a total floor area of approximately 24,000 square meters.

Located next to the warehouses of some of the world's leading brands such as Amazon, Noon and DHL, the plot for the development of the first facility offers a dual customs solution thanks to its strategic location, easy access and proximity to Al Maktoum International Airport. The facility is expected to be completed and ready for leasing by the end of 2024, paving the way for the development of more leasing-to-lease and bespoke facilities to support tenants' requirements from third-party logistics, e-commerce and retail businesses.

With the logistics sector identified among Aldar's key asset classes, the company is achieving promising exposure to the sector in line with its plans to diversify its investment portfolio towards alternative and high-growth real estate asset classes. The projects being developed with Dubai South form part of Aldar's AED 1 billion investment in real estate logistics, which also includes the development of other construction and leasing projects across the UAE, as well as the acquisition of 7 Central Logistics Centre and an adjacent plot of land in Dubai Investments Park.

The partnership was signed at Dubai South's headquarters in the presence of His Excellency Khalifa Al Zaffin, CEO of Dubai Aviation City Corporation and Dubai South, and Talal Al Thiyabi, Group Chief Executive Officer of Aldar.

His Excellency Khalifa Al Zaffin, Chief Executive Officer of Dubai Aviation City Corporation and Dubai South, said: "As Dubai South continues to shape the future of logistics, our partnership with Aldar represents a strategic shift towards enhancing our logistics infrastructure in line with our mission to provide a dynamic business environment through state-of-the-art facilities. Through this partnership, we aim to leverage Aldar's expertise in real estate development to elevate the logistics landscape. The new logistics facilities are a testament to our commitment to meeting the evolving needs of the third-party logistics, e-commerce and retail sectors, and reinforces our position as a hub for driving economic development in the region."

Talal Al Thiyabi, Group Chief Executive Officer of Aldar Properties, said: "We are very excited about this partnership, which is in line with our growth strategy, and we share a similar investment mindset with a partner who together has a lot of integrated business potential. This collaboration marks the beginning of a dynamic project that will enable us to benefit from the UAE's continued investment in infrastructure development, the development of the digital economy, the growing demand for delivery services, as well as investment in excellent logistics assets that meet – and even exceed – the standards of international tenants."

Dubai South is Dubai's largest integrated urban development, based on the aviation and logistics ecosystem, and will include the largest airport in the world when fully operational and operational, and has been enhanced with a multimodal transport infrastructure that connects various modes of air, land and sea transport. Dubai South aims to create a vibrant community by leveraging its unique aviation, logistics, real estate and world-class infrastructure offerings and services.