ABU DHABI, 12 June 2007 — Abu Dhabi-based Mubadala Development Company and Singapore’s CapitaLand have entered into a $300 million joint venture to build an integrated residential development in the heart of Abu Dhabi comprising residential, retail, sports and leisure components, on the land surrounding Zayed Sports City Stadium.
The venture with Mubadala, a strategic investment and development vehicle established and wholly-owned by Abu Dhabi government to establish an integrated real estate development company, will pave the way for CapitaLand to grow its portfolio in the oil-rich region which boasts some of the highest per capita incomes in the world ($46,200), the company said in a statement yesterday.
The joint venture will be 51 percent owned by Mubadala with CapitaLand holding the remaining 49 percent.
“The signing of the joint venture agreement with Mubadala paves the way for CapitaLand to establish a long-term strategic relationship to grow its presence in Abu Dhabi and around the Gulf Cooperation Council region,” CapitaLand President And Chief Executive Liew Mun Leong said in a statement.
“With rapid economic growth and influx of prosperous expatriates, there is a rising demand for modern living, international retail and world-class leisure amenities,” he said.
The development spans 1.4 million square meters (15 million square feet) and construction will be completed in phases over the next few years, with the first sales launch of residential units expected before the end of the year.
“CapitaLand is widely recognized for its international real estate experience, track record performance and execution capabilities,” said Khaldoon Khalifa Al-Mubarak, CEO and managing director of Mubadala Development Company. “We are excited by this joint venture since the two companies share a common vision to create quality and sustainable real estate developments in Abu Dhabi,” he added.