SINGAPORE: CapitaLand, SouthEast Asia’s largest developer, and the Abu Dhabi government’s investment arm said yesterday they had formed a joint venture to build the first phase of a $5-billion (US$1 = RM3.46) project in the United Arab Emirates (UAE).
Singapore’s CapitaLand and its partner Mubadala Development Co said they would invest US$300 million in equity in the development which will include apartments, shops and sports facilities.
The first phase of the 1.4-million sq-metre project, comprising of 900 residential units, will cost about S$500 million (S$1 = RM2.24) to develop, the two parties said at a briefing in Singapore.
“Abu Dhabi is very attractive for us. Until 2010, there will be a deficit of more than 10,000 residential units each year,” said Liew Mun Leong, CapitaLand’s chief executive.
CapitaLand will hold 49 per cent in the joint venture with the remaining stake controlled by Mubadala.
CapitaLand, partly owned by Singapore state investor Temasek Holdings, is also leading a consortium to develop a US$750 million commercial and residential complex in Bahrain.
Rival Singapore developer Keppel Land also announced projects in Abu Dhabi yesterday, saying it had formed a joint venture with the UAE’s second-largest developer, Aldar Properties, to develop two prime waterfront residential projects in Abu Dhabi.