The Mubadala Development Company of Abu Dhabi has launched Capitala, a Dh1.1 billion property company, with its first project being developed with an estimated cost of up to Dh18.35bn.
The new firm was developed and launched in a joint venture with Singapore’s leading real estate player CapitaLand, which has its presence in 100 cities of 20 countries, including Bahrain.
Announcing the joint venture, Carlos Obeid, Chief Financial Officer of Mubadala, said the joint venture was due to the quality of services and performance of CapitaLand. Mubadala will have a stake of 51 per cent while CapitaLand’s share in Capitala will be 49 per cent.
Capitala will be another real estate addition in Mubadala portfolios. It owns Al Dar Properties and last month launched a similar joint venture with America’s property management company John Buck, forming John Buck International.
The company will be headquartered in Abu Dhabi with its operations gradually extending to other emirates, neighbouring GCC states and beyond the region.
Waleed Al Mokarrab Al Muhairi, CEO of Mubadala, has been named as chairman of Capitala. The new company has started its activities with a new mixed-use development around Zayed Sports City in the capital, which will be its main focus of business in property development.
Obeid said: “The first project will be developed on 1.4 million square metres, including a 2km waterfront around the Zayed Sports City. The project is to cost between $4bn and $5bn.”
According to John A Thomas, acting executive director of properties development at Mubadala and board member of Capitala, the work on the project has been initiated with the designing and feasibility study at advance stages.
Obeid said funds for the project will be raised through bank loans, advance sales and loans from the company shareholders. Capitala is a limited liability company and currently there are no plans for going public, he said.
Mubadala launches Dh1.1bn joint property venture