Aldar-Mubadala Joint Venture Acquires Masdar City Square for AED 918 Million

The joint venture formed by Aldar Properties and Mubadala Investment Company has finalised the acquisition of Masdar City Square in Abu Dhabi for AED 918 million (US $250 million). This transaction significantly expands the partners’ income-generating real estate assets within Masdar City, a key hub for clean energy, AI, and sustainable urban development.

Portfolio Expansion and Strategic Importance

Masdar City Square adds a substantial 47,000 square metres of net leasable area across seven office buildings to the joint venture's holdings. The acquisition elevates their total portfolio within Masdar City to a valuation of US $1.28 billion, now encompassing over 158,000 square metres of net leasable commercial space and more than 1,400 fully occupied residential units. The newly acquired complex, completed in Q1 2026, is strategically located near Zayed International Airport, offering direct access to major highway networks connecting Abu Dhabi and Dubai.

Aldar Group CEO, Talal Al Dhiyebi, highlighted that Abu Dhabi's robust economic fundamentals and continuous investment in future-focused industries are attracting global businesses, institutions, and talent, driving demand for high-quality commercial real estate. Masdar City's distinctive ecosystem, centred on clean energy, technology, and advanced research, plays a crucial role in this growth narrative.

Sustainability and Occupancy

The Masdar City Square complex is designed with a strong emphasis on sustainability, aiming for LEED Platinum and WELL Gold certifications. It integrates features such as solar photovoltaic systems and passive cooling techniques. Notably, the acquisition includes a Net Zero energy HQ office building that currently serves as the headquarters for the Abu Dhabi Department of Energy.

The newly integrated asset offers near-full occupancy with a high-quality institutional tenant base, including entities like IRENA, Masdar, Siemens, G42, and the UAE Space Agency. The expanded portfolio maintains a weighted average unexpired lease term of 5.2 years, underscoring its stable income generation potential and appeal to long-term investors.

This latest move follows the joint venture's earlier acquisition of 17 assets within the Masdar City Green REIT and The Link at Masdar City, which also concluded in Q1 2026. The continued investment aligns with Mubadala's strategy of building long-term economic value in Abu Dhabi by supporting infrastructure in future-focused sectors and strengthening the operating environment for knowledge-driven industries.