Aldar buys project in Dubai Studio City for $300m

• Development bought from SRG
• Includes six mid-rise buildings
• Part of a wider growth strategy

Aldar, Abu Dhabi’s largest developer, has acquired a residential and community retail development in Dubai Studio City from SRG, a private developer, for AED1.1 billion ($300 million).

The project includes six mid-rise buildings featuring 312 residential units, retail, recreational and food and beverage outlets and is set for completion in 2028, the developer said in a statement to the Abu Dhabi Securities Exchange.

“Dubai is a priority growth market for Aldar,” said Jassem Saleh Busaibe, the CEO.

He said the deal is part of a wider strategy to build a bigger portfolio of assets in Dubai that generate steady income, as the emirate continues to attract more international investors, businesses and skilled workers.

Aldar’s portfolio in Dubai includes a mixed-use joint venture with Expo City Dubai, a commercial tower in Dubai International Financial Centre, a Grade A office tower on Sheikh Zayed Road and logistics assets in National Industries Park and Dubai South.

A joint venture between Aldar and Dubai Holding, an investment conglomerate owned by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, is building three master-planned residential communities in Dubai.

In February, the joint venture acquired two land plots in the emirate where 14,000 new homes will be built, with a combined gross development value of more than AED38 billion.

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Last month, Aldar said headwinds from the war in the region have been “exaggerated” as the group reported strong quarterly earnings.

Group sales totalled AED6.7 billion, a 25 percent year-on-year decline, attributed to “moderating sales activity in March and a disciplined approach to launches in response to evolving market conditions”.

Aldar was listed on the Abu Dhabi Securities Exchange in 2005. Its share price rose 0.4 percent to AED7.91 on Thursday and is up about 9 percent so far this year.