The UAE’s Mubadala Development Company (Mubadala) and Singapore’s CapitaLand have signed a joint venture agreement to set up an integrated real estate development company.

The announcement of the new JV follows closely the launch of the Abu Dhabi – Singapore Business Forum.

Using the resources and expertise of both partners, the JV company will develop and manage a prime integrated real estate development in the heart of Abu Dhabi - the capital of the UAE - comprising residential, retail, sports and leisure components, on the land surrounding the existing Zayed Sports City Stadium.

Mubadala Development Company, a strategic investment and development vehicle established and wholly-owned by the Government of the emirate of Abu Dhabi, will hold a 51 per cent stake in the joint venture.

CapitaLand will own the remaining 49 per cent interest, in line with CapitaLand Group's strategy to seek opportunities in the fast-growing GCC region.

The partners have committed to invest an initial equity amount of $300 million.

This investment in the joint venture is subject to receipt of customary business licence and other relevant governmental approvals which may be required.

Khaldoon Khalifa Al Mubarak, CEO and managing director of Mubadala Development Company, said:

“CapitaLand is widely recognized for its international real estate experience, performance track record and execution capabilities.

“We are excited by this joint venture since the two companies share a common vision to create quality and sustainable real estate developments in Abu Dhabi.

“When we began developing this project, we searched for partners who could bring the right combination of experience and creativity to assemble such a landmark development in our city, and we found that CapitaLand’s industry leadership in Asia meant that the company had vast experience in executing similar world-class real estate developments.”

Liew Mun Leong, president and CEO of CapitaLand Group, said:

 'The signing of the JV agreement with Mubadala paves the way for CapitaLand to establish a long term strategic relationship to grow its presence in Abu Dhabi and around the GCC region (GCC).

“Mubadala has an impressive track record in diversifying and developing the rapidly growing economy of Abu Dhabi, while achieving superior returns on its investments.

“Together, we will create an outstanding landmark development providing unique lifestyle experiences which will transform the way people live, work and play in Abu Dhabi.'

The new JV Company will act as the developer and facility manager for its maiden integrated development, scheduled to be unveiled in Abu Dhabi in the coming months, which spans across a 1.4 million-square metre (approximately 15 million square feet) site, together with a 2 km prime waterfront area.

This parcel of land is one of the few remaining areas to be developed on the main island of Abu Dhabi, with easy access to key transport networks and the central business district.

The development benefits from existing infrastructure services which enable an expedited development time frame to home owners.

This phased development schedule will be completed over the next few years, with the first phase of the residential units to be launched for sale before the end of this year.

As it develops, the JV Company will continue to identify new real estate opportunities to expand its presence both in Abu Dhabi and the region.

The emirate of Abu Dhabi occupies over 85 per cent of the geographical land area of the UAE, and with proven crude oil reserves of approximately 92.2 billion barrels, it controls over 90 per cent of the country’s oil wealth.

Abu Dhabi has demonstrated a steady GDP growth rate of 11.5 per annum from 1998-2005, while it’s per capita GDP of $46,200 in 2006 is the highest in the<