Existing operational buildings targeting gross rental income above AED 15 million per annum
This is a distinctive acquisition opportunity for a large-scale industrial and commercial asset in ICAD 1, Abu Dhabi. The investment case is built exclusively around existing leasable buildings: substantial warehouses and supporting offices within an operating platform designed for industry, trade, distribution and logistics. No unbuilt land, future development or expansion potential is included in the income calculation or the marketed rental figures.
The identified leasable space comprises 29,673 sqm of warehouses and 2,548 sqm of offices, totalling approximately 32,221 sqm of operational buildings. This gives an investor a sizeable rental base from day one, following final works and the relevant leasing approvals.
| Operating component | Leasable area |
|---|---|
| Warehouses | 29,673 sqm |
| Offices | 2,548 sqm |
| Total operational buildings | Approximately 32,221 sqm |
Built to convert space into income
The project combines large industrial warehouses with administrative offices and stated power capacity of 1.5 MW, with a further capacity increase indicated as approved. These features support a clear target market of manufacturing, storage, distribution, trade and logistics occupiers that require functional space, supporting offices and high-quality operational infrastructure.
The value proposition is direct: the income-producing built stock already exists. The investor is not waiting through a multi-year construction cycle to create leasable accommodation. The asset is progressing through final completion and leasing preparation, after which it can be launched with a focused strategy that accommodates anchor tenants in larger areas or multiple tenants across a diversified income profile.
ICAD 1: a demand-supported industrial and commercial environment
The project is located in ICAD 1, within Abu Dhabi’s industrial and commercial ecosystem in Mussafah. KEZAD announced a AED 55 million infrastructure-upgrade project in KEZAD Musaffah that included road work, junction widening, traffic-flow improvements and lighting upgrades, strengthening the movement of goods and vehicles in the area. 1
Market evidence supports the leasing environment. JLL reported 5.0% year-on-year growth in Abu Dhabi industrial rents in Q2 2026, driven by restricted Grade A supply and strong occupancy. Cushman & Wakefield Core reported 98% occupancy in KEZAD and a 35% increase in warehouse leasing activity. 2 3
The project is underpinned by operating buildings in an active industrial market. The income proposition is based on existing warehouse and office space only, without relying on unbuilt land or future development assumptions.
Rental assessment: existing buildings only
The rental strategy is informed by current ICAD asking rents. The reviewed warehouse sample ranged from AED 490 to AED 850 per sqm per annum, with a median of approximately AED 715 per sqm per annum. The project is positioned at a competitive, market-supported range of AED 600–700 per sqm per annum for warehouses, depending on the component and specification, and AED 900–1,100 per sqm per annum for offices. 4 5
At these levels, the existing buildings alone support target gross rental income of AED 21.33–23.07 million per annum at full occupancy. The public marketing message is deliberately simpler and more conservative: “Target gross rental income above AED 15 million per annum at stabilised occupancy.”
| Existing-buildings income scenario | Target annual gross rental income |
|---|---|
| Competitive entry pricing | AED 21.33 million |
| Enhanced pricing based on specification | AED 23.07 million |
| Approved public marketing statement | Above AED 15 million per annum at stabilised occupancy |
This positioning does not depend on any unleased land value or future construction. The principal operating warehouse-and-office component by itself supports AED 15.61–16.84 million per annum at full occupancy under the rental assumptions used.
A clear path to a 10%–11% targeted annual net yield
For capital targeting a 10%–11% annual net yield at stabilised occupancy, the project provides a measurable underwriting case. At AED 15 million of target gross rent for the principal operating component, and owner costs in the 8%–12% range, the all-in investment cost that supports this yield is approximately AED 120–138 million, including acquisition price, final works and transaction fees. 6
| Target net yield at stabilised occupancy | All-in investment-cost framework |
|---|---|
| 10% net yield | AED 132.00–138.00 million |
| 11% net yield | AED 120.00–125.45 million |
| Base-case all-in cap for 10% / 11% | AED 126.43 million / AED 114.94 million |
An asset for capital seeking performance
This is not a land-banking proposition. It is an opportunity to acquire existing industrial and commercial buildings with approximately 32,221 sqm of operational space, a clear leasing strategy and targeted gross rental income above AED 15 million per annum at stabilised occupancy. It is suited to investors seeking strong rental cash flow and the flexibility to target multiple sectors of Abu Dhabi’s business economy.
The investment conclusion is decisive: the existing buildings alone support target gross rental income of AED 21.33–23.07 million per annum at full occupancy under the market-supported pricing framework. The asset is marketed around a target of gross rental income above AED 15 million per annum at stabilised occupancy, with a clear route toward a targeted 10%–11% annual net yield at a disciplined entry price, cost profile and leasing plan.
References
[1] KEZAD: AED 55 million infrastructure upgrade in KEZAD Musaffah, 26 July 2023
[2] JLL: UAE Industrial Market Dynamics, Q2 2026
[3] Cushman & Wakefield Core: UAE Logistics & Industrial Market Update 2025/2026
[4] Property Finder: Commercial properties for rent in ICAD, reviewed 28 August 2026
[5] Cushman & Wakefield Core: Fitted warehouse for rent in ICAD, reviewed 28 August 2026
[6] Existing-buildings underwriting model, calculated from confidential technical materials and current asking-rent comparables
This document is for general marketing and information purposes. Income and yield targets are subject to final completion, leasing, executed contracts, approvals and due diligence.
