ABU DHABI (ALETIHAD)

Aldar has acquired a residential and community retail development in Dubai Studio City from private developer SRG for Dh1.1 billion, expanding its residential rental market presence in Dubai and strengthening its recurring income portfolio.

The transaction, one of the largest mixed-use deals in the UAE this year and a record-setting acquisition within Dubai Studio City, was advised by Cushman & Wakefield Core and completed through an off-market transaction between SRG and Aldar.

The project, scheduled for completion in 2028, will comprise 312 residential units spread across six mid-rise buildings along with a community mall. The mixed-use development will also include 39 retail units.

According to the company, the acquisition forms part of Aldar’s long-term strategy to build a high-quality recurring income platform and scale its footprint in Dubai.

The development will include a mix of one-, two- and three-bedroom homes as well as duplex units. The buildings are designed with sandstone-toned façades and large terraces and balconies overlooking landscaped areas.

Designed by UAE-based Loci Architecture & Design, the development is planned as a pedestrian-oriented community built around shaded plazas and landscaped courtyards.

The project will include a nature-inspired public park linking the retail and residential buildings, with trails, sports facilities, playgrounds and green spaces. The community mall has been designed as a walkable neighbourhood centre with restaurants and cafes overlooking the park.

The six residential buildings will surround a private central garden featuring a lagoon pool, lounge areas and recreational facilities, while the residences will range from duplex townhouses with private gardens to rooftop penthouses overlooking the parks.

The community will also feature a retail, recreational and food-and-beverage mall, while a 16,000-square metre park within the development will include jogging tracks, playgrounds and activity areas.

Jassem Saleh Busaibe, Chief Executive Officer of Aldar Investment, said Dubai remained a priority growth market for the company.

“Dubai is a priority growth market for Aldar, and this acquisition reflects our belief in the city’s residential market and the central role that institutionally owned, professionally managed rental housing plays in meeting the needs of a growing population,” Busaibe said.

“Dubai Studio City’s established infrastructure, vibrant community, and strong connectivity make it an excellent location for a high-quality, professionally managed living environment,” he added.

According to Busaibe, the transaction is part of a broader strategy to expand Aldar’s portfolio of income-generating assets in Dubai as the emirate continues attracting global talent and investment.

Cushman & Wakefield Core described the development as one of the UAE’s earliest large-scale multi-family housing schemes, a model in which multiple residential buildings are retained under single ownership to generate long-term recurring income.

The advisory firm noted that such institutional multi-family developments remain relatively uncommon in the UAE, where developers traditionally focus on strata sales.

The transaction was concluded amid heightened geopolitical uncertainty in the region, with the companies saying its completion reflected continued institutional confidence in the UAE’s economic fundamentals and policy environment.

SRG leadership said the deal highlighted continued confidence in the UAE market despite global and regional uncertainties.

“Having operated in this market for close to 45 years, we have seen cycles come and go; global crises, regional uncertainty, and market corrections,” SRG leadership said.

“What has remained constant throughout is the quality of governance and the consistency of vision at a federal level,” the company said, adding that the UAE continued attracting investor confidence through infrastructure investment, economic policy and regulatory clarity.

The company added that completing a transaction of this size in the current environment reflected “strong occupier demand, a maturing investor base and a leadership that has turned a young nation into one of the world’s most trusted investment destinations in a single generation”.

David Abood, Co-CEO of Cushman & Wakefield Core, described the acquisition as a landmark transaction for Dubai’s real estate market.

“This is a landmark transaction for Dubai, and a strong signal of how the market is maturing,” Abood said.

“Purpose-built multi-family developments are commonplace in more established global markets but still rare in the UAE, where strata-sale models dominate,” he added.

According to Abood, the development was designed from the outset for long-term institutional ownership rather than individual unit sales.

“The fact that this deal was concluded in the current environment is itself a statement,” he said. “Institutional capital of this calibre commits where it has long-term confidence, and the UAE continues to earn that confidence through strong leadership and a clear, stable economic direction.”

The company said the project is located within an established residential corridor with direct access to Al Qudra Road and Hessa Street, and close proximity to areas such as Motor City and Dubai Sports City.

The development also benefits from access to leisure destinations including Dubai Autodrome, Dubai International Cricket Stadium and Dubai Butterfly Garden, in addition to schools and other community facilities.

Aldar said the latest acquisition further expands its Dubai portfolio across residential, commercial, logistics and mixed-use assets. Its recurring income platform in Dubai already includes a mixed-use joint venture with Expo City Dubai, a commercial tower in DIFC, a Grade A office tower on Sheikh Zayed Road and logistics assets in National Industries Park and Dubai South.

The company also highlighted the progress of its development joint venture with Dubai Holding, which has already launched three master-planned residential communities and has an expanded pipeline exceeding 2.3 million square metres of gross floor area supporting Dubai’s 2040 Urban Masterplan.