Abu Dhabi: Aldar Properties has agreed to buy nine residential buildings in Sharjah's Aljada development from Arada for Dh1.1 billion, marking the Abu Dhabi developer's first real estate investment in the emirate.
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The forward purchase agreement covers three residential blocks comprising more than 1,100 units, with the properties scheduled for delivery in the fourth quarter of 2029.
The deal expands Aldar's develop-to-hold pipeline to Dh21 billion as the developer increases its exposure to income-generating residential assets.
First Sharjah move
The transaction gives Aldar an entry into Sharjah's residential market through Aljada, Arada's flagship mixed-use master development.
It follows a recently announced Dh15 billion development partnership between the two companies and deepens an existing relationship between Aldar and Arada.
Talal Al Dhiyebi, group chief executive of Aldar, said Sharjah was a "large and growing residential market" and that Aljada offered an attractive entry point.
"This investment is closely aligned with our develop-to-hold strategy, adding scale to our residential for rent portfolio while broadening our exposure to a new market," Al Dhiyebi said.
He added that the deal combined "strong strategic fit with attractive long-term fundamentals". For Aldar, the transaction is also a geographic expansion of its residential portfolio beyond its established markets.
1,100 homes
The nine buildings will add more than 1,100 units to Aldar's portfolio.
Arada will deliver the assets in the fourth quarter of 2029. The homes are expected to cater primarily to end-users and long-term renters looking for relatively accessible housing within an established master-planned community.
Ahmed Alkhoshaibi, group chief executive of Arada, described the transaction as a "strong vote of confidence" in Aljada and the wider Sharjah residential market.
"To have a developer of Aldar's calibre and track record choose Aljada as its first investment in the emirate reflects the quality of what we have built here, and the scale of the opportunity that Sharjah represents," Alkhoshaibi said.
He said the deal marked another step in the companies' growing partnership, adding that they would look for further opportunities to work together across sectors.
Aljada grows
Aljada spans 2.2 million square metres and is expected to contain about 25,000 homes when fully built, with an anticipated gross sales value of Dh35 billion, according to Arada.
Residential handovers have been under way since 2021, with more than 8,800 units delivered across several districts.
The development has also built up its supporting infrastructure, including the Madar family entertainment district, two international schools, two hotels, the Nest student housing complex and more than 300,000 square feet of occupied retail space.
The latest transaction therefore gives Aldar exposure to a community that already has residential and lifestyle infrastructure in place rather than a new development at the planning stage.
Dubai access
Aljada is located close to Sheikh Mohammed bin Zayed Road and Al Dhaid Road. Arada says the development is about seven minutes from Sharjah International Airport and around 20 minutes from Dubai International Airport.
Further development, including the Arada Central Business District and Madar Mall, is expected to add commercial, retail and leisure facilities to the community.
For Sharjah, the transaction also represents another investment by a major UAE property developer in the emirate's expanding residential market.
For Aldar, the purchase adds more rental housing to its develop-to-hold strategy while giving the company a foothold in a new emirate. Both companies said they would continue to explore opportunities under their wider strategic partnership.