Peninsula Real Estate Management Limited has signed an agreement with Waha Land to purchase 17 leased warehouse buildings of Al Markaz Industrial Development in a cash transaction of AED 555 million (US$151.2 million).
The Company has also agreed to the future purchase of a completed 150,000 square foot industrial property from developers Waha Land.
The purchased land spreads over 362,000 sqm on five plots in Al Markaz’s industrial space and the deal is expected to close by the end of 2022, subject to regulatory approvals and conditions agreed by the two parties.
In addition to the five plots, Peninsula will also acquire an additional 136,000 sqm of completed and income-producing industrial properties that are currently being developed by Waha Land. Leasing is expected to commence for the ongoing construction in Q3 2023
Al Markaz is located in Al Dhafra, 35kms west of Abu Dhabi, and has been developed by Waha Land as an integrated mixed-use industrial development with Grade ‘A’ industrial and logistics facilities. Waha Land is a wholly owned subsidiary of Waha Capital PJSC, an Abu Dhabi-listed investment management company.
Hazem Saeed Al Nowais, Chief Executive Officer of Waha Land, commented: “Waha Land has, over several years, transformed this green field site that was granted by the Government of Abu Dhabi into a Grade A industrial and logistics park.
“Al Markaz was developed in line with Abu Dhabi’s Vision 2030 plan to advance the industrial and logistics sector of the Emirate and offers investors light industrial, logistics, and warehousing facilities as well as infrastructure-ready industrial land.
“Building on the success of this high-value transaction with Peninsula, we are well-positioned to continue executing and delivering on our long-term business strategy of investing in the sustained development of Al Markaz.”
Following the sale, Waha Land will continue to focus on developing the remaining land bank assets it currently owns. It will also continue executing its long-term strategy to develop, lease and monetize land and built assets at Al Markaz.
Peninsula is on an overdrive to acquire high-quality assets to enhance its portfolio further. James Gallon, Chief Executive Officer, said the property in Al Markaz fitted in nicely with their growth plans.
“Peninsula is focused on acquiring high-quality institutional real estate across the GCC and, in Waha Land, we have found a partner who shares our commitment to excellence and to delivering best-in-class facilities to their tenants,” said Gallon.
“This acquisition is one of a number of transactions that Peninsula will be announcing in the months ahead as we continue to build a portfolio with diversified and highly visible cash flows.
“Peninsula believes strongly in the opportunities provided by the investment landscape in the UAE, made possible by the country’s strong fiscal fundamentals and ambitious economic vision.”
The Al Markaz development is perfectly located to take advantage of easy access to the UAE’s growing industrial and logistics infrastructure, including key land, sea, air, and rail routes. The small industrial unit under development is 90% occupied and leased to over 75 tenants across various industrial segments including defence, oil, and gas, logistics, manufacturing and data centres.
