UPAC Formalizes Partnership Agreement with NREC to Develop Abu Dhabi’s Reem Mall
23 JUNE 2015, Abu Dhabi - UAE
United Projects for Aviation Services Company (UPAC), a leading commercial real estate and facilities management company, and National Real Estate Company (NREC), one of the leading MENA real estate developers, today announced the formalization of their partnership agreement to develop Reem Mall, which is set to become one of Abu Dhabi’s most important and exciting retail destinations.
Under the agreement, UPAC, through its real estate subsidiary, Al Arfaj Real Estate Company, will invest up to USD 224 million over the next three years, marking a key milestone for the UAE retail mega project. UPAC is a subsidiary of global logistics giant, Agility.
The news follows the initial signing of heads of terms between the two companies in October 2014.
Nadia Akil, Chief Executive Officer of UPAC, said: “UPAC has a solid track record in real estate management within Kuwait. Our partnership with NREC and strategic investment in Reem Mall will not only strengthen our presence in the region, but will also help bring the project to completion as scheduled.
Samuel Sidiqi, Chief Executive Officer, NREC, said: “This significant deal not only reflects NREC’s ability to attract investment capital, but also our team’s capabilities in structuring sophisticated deals that serve the Company’s long-terms funding strategy for the project.
Spread across 2 million sq ft, Reem Mall will feature approximately 450 stores, including 85 restaurants and a range of family-focused entertainment offerings.
The construction of the US$ 1 billion mall is set to commence this year and is expected to be completed by 2018.
Established in 2000, publicly listed on the Kuwait Stock Exchange, and headquartered in Kuwait, UPAC is a leading commercial real estate and facilities management company with a specialization in Build Operate Transfer (BOT) initiatives. Its services cover project management and consultancy, real estate development as well as property and facilities management. UPAC manages over 20,000 sqm of commercial space at the Kuwait International Airport, Sheikh Saad Terminal and other prominent locations within the country. www.upac.com.kw
Established in Kuwait in 1973, the National Real Estate Company (NREC) is a publically listed real estate and investment company with a presence in the Middle East and North Africa.
Over the years, NREC has grown into one of the largest real estate companies in the region with ventures across the Middle East and North Africa. NREC has assets and capital of US$ 1.9 billion and manages 80 million square feet of land. The organisation houses subsidiaries and entities across a range of countries including the UAE, Egypt, Jordan, Iraq, Lebanon, and Libya. The portfolio of projects completed or under development, includes office space, mixed use centres, industrial parks, residential communities and super-regional malls.
About Reem Mall
Reem Mall is Abu Dhabi’s major new retail, leisure, dining and entertainment destination. It is expected to launch in 2018, with construction beginning by early 2015. The Reem Mall project will comprise around 450 stores, including 85 F&B outlets and a range of family-focused entertainment offerings.