Aldar Properties PJSC and Mubadala Investment Company Acquire Masdar City Square for AED 918 Million

ABU DHABI, UAE — Sept. 16, 2026 — Aldar Properties PJSC and Mubadala Investment Company have acquired Masdar City Square, a seven-building Grade A office complex in Abu Dhabi's Masdar City, for AED 918 million through their joint venture established in 2024. The transaction brings the partners' combined Masdar City portfolio to AED 4.7 billion, spanning more than 158,000 square meters of commercial net leasable area and over 1,400 fully occupied residential units.

Deal Details: A Newly Completed, Near-Fully Occupied Asset

Masdar City Square comprises more than 47,000 square meters of net leasable area across seven office buildings completed in the first quarter of 2026. The complex is 99% occupied at the time of acquisition, with a tenant base that includes TAQA, the Abu Dhabi Department of Energy, Emirates College, and the Mohamed bin Zayed University of Artificial Intelligence. The Abu Dhabi Department of Energy occupies a net-zero headquarters building within the complex, which also includes structured parking.

The property is designed to achieve LEED Platinum and WELL Gold certifications and incorporates solar photovoltaic systems and passive cooling techniques. Masdar City Square is located near Zayed International Airport with direct access to highway networks connecting Abu Dhabi and Dubai, positioning it within one of Abu Dhabi's key business districts.

At an acquisition price of AED 918 million against more than 47,000 square meters of net leasable area, the deal implies pricing of approximately AED 19,500 to AED 19,600 per square meter — a benchmark for institutional-grade, newly delivered office assets in the Masdar City submarket.

Expanding the Aldar–Mubadala Joint Venture

The acquisition is the latest transaction under the Masdar City-focused joint venture that Aldar Properties PJSC and Mubadala Investment Company formed in 2024. The JV's earlier transactions included the acquisition of 17 assets within the Masdar City Green REIT and The Link at Masdar City, the latter of which completed in the first quarter of 2026. With Masdar City Square added, the joint venture now holds a diversified portfolio with a weighted average unexpired lease term of approximately 5.2 years. Tenants across the broader JV portfolio include IRENA, Masdar, Siemens, G42, and the UAE Space Agency, alongside the tenants at Masdar City Square.

Talal Al Dhiyebi, Group Chief Executive at Aldar, said Abu Dhabi's economic fundamentals and investment in future-focused industries are supporting sustained demand for high-quality commercial real estate. "Masdar City Square adds a high-quality, highly occupied asset to our joint venture with Mubadala as we continue to scale our presence in this strategically important destination," he said.

Ali Eid AlMheiri, Executive Director, Diversified Assets, UAE Investments Platform at Mubadala, said the acquisition reflects the firm's disciplined investment approach. "Through our joint venture with Aldar, we are assembling a real estate portfolio that strengthens the operating environment for knowledge-driven industries, advances the UAE's Net Zero ambitions, and contributes to the continued diversification of the UAE economy," he said.

Market Context: Abu Dhabi's Tight Grade A Office Market

The acquisition comes as Abu Dhabi's Grade A office market is operating at near-full occupancy, with prime occupancy rates around 99% and city-wide office vacancy close to 1% to 2%. That supply-demand dynamic has supported upward pressure on rents and reinforced demand for newly delivered, institutionally tenanted assets. Masdar City Square, completed in early 2026 and already 99% leased, enters the JV's portfolio as a stabilized income-producing asset in that environment.

Masdar City has developed into a concentrated hub for clean energy, artificial intelligence, advanced research, and sustainable urban development. The free zone hosts more than 2,500 organizations, including several Fortune 500 companies, and is home to one of the largest clusters of LEED Platinum buildings globally. The tenant profile at Masdar City Square — heavily weighted toward government, quasi-government, energy transition, and AI and research institutions — is consistent with the broader character of the submarket.

ESG Profile and Sustainability Credentials

Sustainability is a defining feature of the asset. Masdar City Square's LEED Platinum and WELL Gold certifications, solar photovoltaic systems, and passive cooling design place it among the higher-rated commercial buildings in the region. The inclusion of a net-zero energy headquarters building — currently serving as the Abu Dhabi Department of Energy's headquarters — adds a flagship ESG asset to the JV's portfolio.

Ahmed Baghoum, Chief Executive Officer of Masdar City, said the acquisition advances Masdar City's vision for a connected, sustainable community. "It also adds a net-zero energy HQ office building, currently serving as Abu Dhabi Department of Energy's HQ, to the joint venture's portfolio," he said.

Aldar Properties PJSC manages total assets under management of AED 56 billion across retail, residential, commercial, industrial and logistics, hospitality, and education segments. Mubadala Investment Company manages a global portfolio of approximately US$385 billion across six continents.

Sources

Mubadala Investment Company — Aldar and Mubadala JV Expands Investment in Masdar City with Acquisition of Masdar City Square