Aldar deepens logistics bet with KEZAD deal

Aldar has acquired a portfolio of industrial and logistics assets in KEZAD for AED650 million, strengthening its exposure to Abu Dhabi’s warehouse market as demand for modern supply-chain space continues to build across the emirate.

The transaction, announced on 23 April 2026, involves three purpose-built, multi-let warehouses sold by Khalifa Economic Zones Abu Dhabi, a subsidiary of AD Ports Group. The assets add about 163,000 square metres of income-generating industrial and logistics space to Aldar’s platform and deepen the developer’s position in one of Abu Dhabi’s main trade and manufacturing corridors.

The warehouses are located in KEZAD’s Al Ma’mourah cluster and are almost fully leased, with occupancy of about 97 per cent. The tenant base spans food and beverage, logistics, manufacturing and technology, with DHL, Spinneys and Noatum Logistics among the anchor occupiers. Aldar will assume responsibility for asset management, leasing and property management, giving it direct operational control over a portfolio with established rental income.

The deal marks another step in Aldar’s shift from a primarily residential-led development model towards a larger income-producing real estate platform. Industrial and logistics assets have become a higher priority for institutional investors as e-commerce, cold-chain distribution, manufacturing localisation and regional re-export activity reshape demand for warehouses close to ports, highways and future rail links.

Aldar’s latest purchase follows its November 2025 acquisition of two built-to-suit warehouses occupied by Noon and Emtelle in KEZAD for AED570 million. With the new assets, Aldar’s industrial and logistics portfolio rises to more than 700,000 square metres, while its development pipeline in the segment exceeds 1.5 million square metres of leasable space. The company is also pursuing a broader develop-to-hold strategy, with a pipeline of more than AED20 billion scheduled for delivery over the next four years.

KEZAD’s location has been central to the commercial case for the transaction. The zone sits close to Khalifa Port and is linked to major road routes, with access to the Etihad Rail freight network adding to its long-term appeal for tenants that need regional distribution capacity. Its broader land bank covers about 550 square kilometres, giving AD Ports Group one of the largest industrial platforms in the country and a recurring revenue base tied to long leases.

For AD Ports Group, the sale forms part of a capital recycling programme intended to unlock funds from mature real estate assets and redirect them towards expansion, debt reduction and higher-return growth projects. The AED650 million consideration represents 65 per cent of the group’s minimum AED1 billion target for additional asset monetisation transactions in 2026. The company generated AED4.6 billion from asset monetisation in 2025, including the sale of KEZAD land and warehouses and a 9.77 per cent stake in NMDC Group.

The transaction also shows how Abu Dhabi’s industrial property market is drawing stronger competition from local, regional and international investors. Seven bidders took part in the sale process, reflecting confidence in logistics real estate at a time when high-quality, leased warehouse assets remain scarce in prime locations. For asset owners, the appetite provides an opportunity to recycle capital at attractive valuations; for buyers, leased warehouses offer predictable cash flows and exposure to the emirate’s non-oil growth agenda.

Aldar’s investment arm has been expanding across commercial, retail, hospitality, education and logistics assets, building a portfolio designed to balance development earnings with recurring income. The acquisition gives the company a stronger foothold in a sector where tenant demand is linked less to short-term property cycles and more to trade flows, consumer distribution, manufacturing policy and supply-chain resilience.