Aldar and Mubadala Investment Company expanded their joint venture portfolio this week. The partnership acquired Masdar City Square for Dh918 million in Abu Dhabi. This purchase increases their total Masdar City real estate holdings to Dh4.7 billion. The newly completed commercial complex features seven modern office buildings. It adds over 47,000 square meters of net leasable space to the market.

Investing In High Occupancy Sustainable Real Estate

Masdar City Square currently boasts an impressive 99 percent occupancy rate. Major tenants include TAQA, the Department of Energy, and Emirates College. The complex is located near Zayed International Airport with excellent highway access. The buildings are designed to achieve high environmental sustainability certifications. They utilize solar photovoltaic systems and passive cooling techniques to save energy.

The acquisition includes a net-zero energy headquarters building occupied by the Department of Energy. The joint venture now owns more than 158,000 square meters of commercial space. They also manage over 1,400 fully occupied residential units within Masdar City. This investment highlights the strong demand for sustainable commercial real estate in the UAE. Both companies remain committed to developing smart, eco-friendly urban environments.

Strengthening The Abu Dhabi Commercial Sector

The transaction reflects strong confidence in Abu Dhabi's growing commercial sector. The joint venture was established in 2024 to focus specifically on Masdar City. Previous acquisitions include 17 assets within the Masdar City Green REIT. The weighted average unexpired lease term for the portfolio is about 5.2 years. These investments support the UAE's broader goals for sustainable economic development.

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