Real estate firm Aldar and Abu Dhabi’s sovereign wealth fund Mubadala Capital have joined hands to create a fund that will connect GCC investors to new opportunities for investment purposes, as per a press release on Zawya.
The first fund to be created under the new company’s oversight is expected to be worth $1 billion.
The partnership will combine Aldar’s successful track record in real estate with Mubadala’s expertise in capital allocation.
Aldar Capital will be headquartered in Abu Dhabi’s main financial freezone ADGM, where the capital Emirate’s main financial regulatory body is also located.
“The launch of Aldar Capital will be a defining milestone for Aldar, creating a dedicated investment management platform that transforms our business from a regional real estate leader into a manager of global capital,” said Aldar’s Group CEO Talal Al Dhiyebi.
The new initiative fits in line with Aldar’s goal of reaching AED 20 billion in annual net profit. Aldar currently manages around $12.8 billion in real estate assets and frequently partners with other investment firms for the purpose of identifying opportunities in real estate.
Statista estimates show the real estate market is projected to hit roughly $700 billion in value by the end of the year with a notable surge in the real estate services arm, as per a Khaleej Times report.