Aldar secures nine Sharjah buildings in Arada agreement

Abu Dhabi developer Aldar Properties has agreed to acquire nine residential buildings in Sharjah from Arada for AED1.1 billion ($300 million), marking its first property investment in the emirate.

The forward purchase agreement, announced on Thursday, covers more than 1,100 homes across three residential blocks at Aljada, Arada’s mixed-use development. Arada is scheduled to deliver the buildings in the fourth quarter of 2029, after which the properties will join Aldar’s portfolio.

Aldar said the transaction would increase its develop-to-hold investment pipeline to AED21 billion, extending its strategy of retaining completed properties for long-term income rather than selling all units upon delivery. The investment also gives the Abu Dhabi-listed company a foothold in Sharjah’s residential rental market.

The nine buildings are intended primarily for residents and long-term tenants seeking housing at accessible price points, the companies said. Neither developer disclosed expected rental income, projected investment yields, individual unit prices or the payment schedule under the forward purchase arrangement.

The acquisition follows a separate AED15 billion strategic development partnership announced by Aldar and Arada on 30 September. That agreement covers projects in Abu Dhabi, including a jointly planned mixed-use community at Seih Sdeirah, near the Dubai border, and three residential development plots on Yas Island acquired by Arada.

The two transactions broaden the companies’ relationship across both emirates. The September agreement established Arada’s development presence in Abu Dhabi, while the Aljada purchase represents Aldar’s first property investment in Sharjah. The companies said they were examining additional opportunities to collaborate.

Talal Al Dhiyebi, Aldar’s group chief executive, described Sharjah as a large and growing residential market and said Aljada offered an entry point through an established master-planned community. He said the purchase aligned with Aldar’s develop-to-hold strategy by increasing the scale of its residential rental portfolio and extending its geographical reach.

Ahmed Alkhoshaibi, Arada’s group chief executive, said Aldar’s selection of Aljada reflected confidence in the development and Sharjah’s housing market. He described the agreement as another stage in the companies’ partnership, which now combines property acquisitions with joint development activities.

The forward purchase structure means Aldar is committing to acquire buildings before their scheduled completion. Arada remains responsible for delivering the assets, while Aldar expects to add the homes to its investment portfolio following handover. The companies did not announce whether the transaction requires further regulatory approvals or specify its financing arrangements.

Aljada covers approximately 2.2 million square metres and is planned to contain about 25,000 residential units when fully developed. Arada estimates its eventual gross sales value at AED35 billion, a projection covering the wider community rather than the nine buildings included in Aldar’s purchase.

More than 8,800 homes have already been handed over across Aljada’s districts since residential deliveries began in 2021, according to the developers. This existing population and completed infrastructure distinguish the acquisition from an investment in a development where residential occupation has yet to begin.

The community includes the Madar family entertainment district, two international schools, two hotels and the Nest student accommodation complex. Its occupied retail space exceeds 300,000 square feet, providing shopping and services alongside residential buildings.

Aljada is located near Sheikh Mohammed bin Zayed Road and Al Dhaid Road, giving residents road access towards other parts of Sharjah and Dubai. The developer estimates journeys of about seven minutes to Sharjah International Airport and 20 minutes to Dubai International Airport, although actual travel times depend on traffic.

For Aldar, the transaction increases exposure to residential leasing, a segment in which income depends on occupancy, rental rates and operating costs. The announced pipeline figure measures the value of projects being developed or acquired for retention; it is not a statement of revenue. The company has not provided a breakdown of how much of the AED21 billion pipeline is attributable to housing.

The transaction also places a single institutional buyer behind a substantial collection of homes. The figure indicates the scale of the planned addition, but the companies have not published an apartment mix or target occupancy. The delivery date under the agreement remains years away, leaving the homes outside Aldar’s immediately available rental stock.

Further construction at Aljada includes Arada Central Business District and Madar Mall, projects intended to add offices, shops and leisure facilities to the community. Those developments are separate from the residential buildings covered by the purchase agreement.