Dubai South and Aldar partner to develop grade a assets in Dubai south logistics district

Dubai South, the largest single-urban master development focusing on aviation, logistics and real estate, and Aldar Properties (‘Aldar’), the leading real estate developer, investor, and manager in the UAE, have entered into a joint venture to develop Grade A logistics facilities in Dubai South.

Through the partnership, Aldar and Dubai South will work collaboratively to bring new and premium offerings to Dubai South’s Logistics District, including build-to-lease and build-to-suit facilities. Aldar will be responsible for the design, development, and delivery of these new logistics assets, starting with a Grade A logistics facility totalling almost 24,000 sqm of gross floor area (GFA).

The plot – adjacent to global brands including Amazon, Noon and DHL – offers dual customs solution and is strategically located with high accessibility and close proximity to Al Maktoum International Airport. This first facility is expected to be completed and tenant ready by the end of 2024 and paves the way for further development of both build-to-lease and build-to-suit assets, for third-party logistics (3PL), ecommerce, and retail tenants.

Having identified the logistics sector as a key asset class of focus, Aldar is adding selective exposure to the segment aligned with its asset diversification plans into alternative and high-growth real estate asset classes. The projects being developed with Dubai South form part of Aldar’s recently announced AED 1 billion investment in logistics real estate, which also includes the development of other build-to-suit and build-to-lease projects across the UAE, and the acquisition of 7 Central Logistics Hub and an adjacent plot in Dubai Investments Park.

The partnership agreement was signed at Dubai South headquarters and witnessed by His Excellency Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South and Talal Al Dhiyebi, Group Chief Executive Officer of Aldar.

His Excellency Khalifa Al Zaffin, Executive Chairman 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 leap towards further enhancing our logistics infrastructure, in line with our mission to foster a dynamic business environment via state-of-the-art facilities. We will leverage Aldar’s expertise in real estate development to elevate the logistics landscape. The new logistics facilities are a testament to our dedication to meet the evolving needs of 3PL, e-commerce, and retail sectors, further solidifying Dubai South as a pivotal hub in the region’s economic development.”

Talal Al Dhiyebi, Group Chief Executive Officer at Aldar, said: “In line with our growth strategy, we are excited to forge this strategic partnership with Dubai South, bringing together two like-minded partners with complementary capabilities. This collaboration marks the inception of a dynamic venture that will capitalise on the UAE’s ongoing investment in infrastructure development, growing digital economy, and increasing demand for delivery services, with investment-grade logistics assets that meet and exceed international tenant standards.”

Dubai South is Dubai’s largest single urban master development focusing on an aviation and logistics ecosystem that houses the world’s largest airport when fully operational, complemented by a multi-modal transport infrastructure connecting air, land and sea. Dubai South aims to create a vibrant living and working community by leveraging its unique aviation, logistics, and real-estate products and services and world-class infrastructure solutions.