Dubai South & Aldar Launch Joint Venture for Grade A Logistics 

Dubai South, a prominent urban master development, and Aldar Properties (“Aldar”)have joined forces to embark on a joint venture aimed at developing Grade A logistics facilities within Dubai South’s Logistics District. 

The in-house legal teams are headed by Emma O’Brien (pictured), General Counsel at Aldar Properties and Dean Stelfox, General Counsel at Dubai South.

The collaboration between Aldar and Dubai South will introduce new and premium offerings to the Logistics District, including build-to-lease and build-to-suit facilities. Aldar will lead the design, development, and delivery of these logistics assets, starting with a Grade A facility spanning nearly 24,000 square meters of gross floor area. 

Strategically positioned adjacent to global brands like Amazon, Noon, and DHL, the plot offers dual customs solutions and boasts high accessibility near Al Maktoum International Airport. The initial facility is slated for completion by the end of 2024, with subsequent development plans for additional build-to-lease and build-to-suit assets catering to third-party logistics, e-commerce, and retail tenants. 

Identifying logistics as a key asset class, Aldar’s collaboration with Dubai South aligns with its asset diversification strategy into alternative and high-growth real estate asset classes. This venture is part of Aldar’s AED 1 billion investment in logistics real estate, which encompasses various build-to-suit and build-to-lease projects across the UAE, including the acquisition of 7 Central Logistics Hub and an adjacent plot in Dubai Investments Park. 

The partnership agreement was formalized at Dubai South headquarters in the presence of 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. 

HE 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 aims to create a dynamic aviation and logistics ecosystem supported by world-class infrastructure solutions, fostering a vibrant living and working community.