Aldar Properties and Mubadala Investment Company have jointly acquired Masdar City Square for Dh918 million, expanding their income-generating real estate portfolio in Abu Dhabi’s Masdar City to Dh4.7 billion.

The acquisition was completed through the real estate joint venture established by the two Abu Dhabi groups in 2024. Masdar City Square comprises more than 47,000 square metres of net leasable space across seven office buildings and was completed in the first quarter of 2026.

The complex is 99 per cent occupied, with tenants including TAQA, the Abu Dhabi Department of Energy, Emirates College and Mohamed bin Zayed University of Artificial Intelligence. Its near-full occupancy gives the joint venture an additional operating commercial asset at a time when Aldar has reported strong demand for Grade A office space across its portfolio.

Masdar City Square is located near Zayed International Airport and has direct access to the main highway networks linking Abu Dhabi and Dubai. The development forms part of Masdar City’s business district, which hosts companies and institutions active in clean energy, artificial intelligence, technology and advanced research.

Talal Al Dhiyebi, group chief executive of Aldar, said Abu Dhabi’s economic fundamentals and investment in future-focused industries were attracting businesses, institutions and talent, supporting demand for high-quality commercial property. He said the acquisition added a highly occupied asset to the partnership while increasing its presence in Masdar City.

Ali Eid AlMheiri, executive director for Diversified Assets at Mubadala’s UAE Investments Platform, said the deal reflected the sovereign investor’s focus on infrastructure serving future-oriented sectors. He said the joint venture was assembling a portfolio intended to support knowledge-driven industries, the UAE’s net-zero ambitions and economic diversification.

The transaction follows the joint venture’s acquisition of 17 assets within the Masdar City Green REIT and its purchase of The Link at Masdar City. Aldar and Mubadala completed the Dh654 million acquisition of The Link in April, adding a fully leased mixed-use development comprising offices, residential accommodation and other facilities.

With Masdar City Square included, the joint venture now holds more than 158,000 square metres of net leasable commercial space. Tenants across the wider portfolio include the International Renewable Energy Agency, Masdar, Siemens, G42 and the UAE Space Agency.

The commercial portfolio has a weighted average unexpired lease term of about 5.2 years, a measure of the average remaining length of leases weighted by their size. The partnership also owns more than 1,400 residential units in Masdar City, which the companies said are fully occupied.

The enlarged portfolio currently gives the partners a broader mix of commercial and residential income streams, while the high occupancy across both segments reduces immediate leasing risk and provides greater visibility over contracted cash flows from properties already completed and operating.

The 2024 partnership between Aldar and Mubadala was structured around a series of ventures covering property assets and development opportunities across Abu Dhabi. For the Masdar City income-producing assets, Aldar holds a 60 per cent interest and Mubadala 40 per cent, with Aldar responsible for asset, property and facilities management.

Masdar City Square also adds sustainability-focused buildings to the portfolio. Masdar City chief executive Ahmed Baghoum said the complex was designed to achieve LEED Platinum and WELL Gold certifications and incorporates solar photovoltaic systems and passive cooling techniques.

One of the buildings is a net-zero energy headquarters office occupied by the Abu Dhabi Department of Energy. Baghoum said the complex was connected to Masdar City’s broader commercial and lifestyle ecosystem and was designed to support investment and innovation while reducing environmental impact.

The deal increases Aldar’s exposure to recurring commercial rental income as its investment-properties business continues to benefit from tight office availability in Abu Dhabi. Aldar said in its 2025 results that adjusted earnings before interest, tax, depreciation and amortisation from its commercial segment rose 21 per cent year on year, supported by higher rents, full portfolio occupancy and contributions from Masdar City assets.