Abu Dhabi gets another master developer, this time through a joint venture with one of the biggest names in Asia’s development space. Singapore-headquartered CapitaLand – the largest real estate company in Southeast Asia by market capitalization – has aligned with Mubadala Development Co to form Capitala.
The former holds 49 per cent in the new entity, whose strategy is to provide a full portfolio of related services – design, build, operate and maintain developments, pre-dominantly in the residential arena. The two companies had first announced the partnership late last year.
“We announced a budged of $4-5 billion last year. It will be a project from a mid-scale to high-end community,” says Carlos Obeid, Chief Financial Officer of Mubadala. “Through this venture, we will turn property development ideas into reality.
“Financing of the project is going to be through a combination of capital injection, bank loan, advance sales and share holder loans. All of these elements will meet the capital expenditures.
“Our strategy of making capital-intensive investments with long-term horizons will contribute to the regeneration of property in Abu Dhabi as well as enhance the real estate sector in the emirate.”
Expanding globally
The promoters look to numbers, which project Abu Dhabi’s population to be well over three million by 2030. For Capita-Land, the venture comes as it looks to expand its international presence.
Its real estate and hospitality portfolio spans more than 100 cities and includes landmarks such as Clarke Quay in Singapore, Freshwater Place in Melbourne, Canary Riverside in London, and Raffles City integrated developments in Singapore and Shanghai. CapitaLand is also currently developing Bahrain’s waterfront Raffles City, in which it has 37 per cent equity.
“Our maiden venture will be on land surrounding the Zayed Sprots City Stadium, this area included a 1.4 million-square meter site with a 2-kilometre prime waterfront area,” says Heang Fine Wong, CEO of CapitaLand GCC Holdings pte ltd. and CapitaLand ILEC pte.
“We have done our due feasibility studies and according to a market report, the current occupancy level is 98 per cent and anticipated to remain constant. Abu Dhabi’s market is still very strong and going forward it is sustainable.
“If you look at the global real estate market, a lot of issues have surfaced. As far as this market is concerned, we do not see a similar trend.
“In fact, the rapid growth in the GCC is synonymous to that in the whole of Asia. We believe that CapitaLand has struck many chords in identifying key markets for potential development.
“Capital’s focus is not just iconic building and design – it is about creating a vibrant community where we can add value to the buyers, tenants and our shareholders.”
LOOKING AHEAD
■ “If you see the Abu Dhabi Vision 2030, we are still very much in the beginning of the property cycle in Abu Dhabi.”
Carlos Obeid for Mubadala
■ “Capitala’s developments will go beyond being mere functional property space. They will be living, vibrant and integrated communities that meet the evolving needs of Abu Dhabi, blending the best cutting edge international design and development expertise seamlessly with the needs of local culture for community living.”
Heang Fine Wong
CAPITALA FACTS
■ The first project from Capitala is in the final stages of design. Due to be launched in the next few weeks, it will be on the land surrounding the Zayed Sport City Stadium. Capitala will act as a developer and facilities manager for all its developments surrounding the Stadium.
■ Headquartered in Singapore, CapitaLand is the largest owner/manager of malls in Asia and the largest serviced residence owner-operator worldwide.
The former holds 49 per cent in the new entity, whose strategy is to provide a full portfolio of related services – design, build, operate and maintain developments, pre-dominantly in the residential arena. The two companies had first announced the partnership late last year.
“We announced a budged of $4-5 billion last year. It will be a project from a mid-scale to high-end community,” says Carlos Obeid, Chief Financial Officer of Mubadala. “Through this venture, we will turn property development ideas into reality.
“Financing of the project is going to be through a combination of capital injection, bank loan, advance sales and share holder loans. All of these elements will meet the capital expenditures.
“Our strategy of making capital-intensive investments with long-term horizons will contribute to the regeneration of property in Abu Dhabi as well as enhance the real estate sector in the emirate.”
Expanding globally
The promoters look to numbers, which project Abu Dhabi’s population to be well over three million by 2030. For Capita-Land, the venture comes as it looks to expand its international presence.
Its real estate and hospitality portfolio spans more than 100 cities and includes landmarks such as Clarke Quay in Singapore, Freshwater Place in Melbourne, Canary Riverside in London, and Raffles City integrated developments in Singapore and Shanghai. CapitaLand is also currently developing Bahrain’s waterfront Raffles City, in which it has 37 per cent equity.
“Our maiden venture will be on land surrounding the Zayed Sprots City Stadium, this area included a 1.4 million-square meter site with a 2-kilometre prime waterfront area,” says Heang Fine Wong, CEO of CapitaLand GCC Holdings pte ltd. and CapitaLand ILEC pte.
“We have done our due feasibility studies and according to a market report, the current occupancy level is 98 per cent and anticipated to remain constant. Abu Dhabi’s market is still very strong and going forward it is sustainable.
“If you look at the global real estate market, a lot of issues have surfaced. As far as this market is concerned, we do not see a similar trend.
“In fact, the rapid growth in the GCC is synonymous to that in the whole of Asia. We believe that CapitaLand has struck many chords in identifying key markets for potential development.
“Capital’s focus is not just iconic building and design – it is about creating a vibrant community where we can add value to the buyers, tenants and our shareholders.”
LOOKING AHEAD
■ “If you see the Abu Dhabi Vision 2030, we are still very much in the beginning of the property cycle in Abu Dhabi.”
Carlos Obeid for Mubadala
■ “Capitala’s developments will go beyond being mere functional property space. They will be living, vibrant and integrated communities that meet the evolving needs of Abu Dhabi, blending the best cutting edge international design and development expertise seamlessly with the needs of local culture for community living.”
Heang Fine Wong
CAPITALA FACTS
■ The first project from Capitala is in the final stages of design. Due to be launched in the next few weeks, it will be on the land surrounding the Zayed Sport City Stadium. Capitala will act as a developer and facilities manager for all its developments surrounding the Stadium.
■ Headquartered in Singapore, CapitaLand is the largest owner/manager of malls in Asia and the largest serviced residence owner-operator worldwide.
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