Manazel Real Estate PJSC (“Manazel”), a leading developer in the UAE, has announced the establishment of a new subsidiary, Manazel Malls. This subsidiary will take operational and managerial control of Capital Mall and all retail areas in Al Reef Community and Al Reef 2 in Abu Dhabi, as well as future retail projects. The formation of Manazel Malls ensures a dedicated and experienced team is now in place to oversee all retail operations, driving efficiencies and enhancing performance within this sector.

Demonstrating the success of Manazel’s diversification strategy, the company reported a net profit of AED 45 million for the period ending June 30, 2015, representing a remarkable 179% increase from AED 16.1 million in the same period in 2014. This growth was driven by improved margins from property sales, reductions in financing costs, and the appreciation of investment property values.

The launch of Manazel Malls aligns with the company’s business strategy, which focuses on leveraging its expertise in the property market while diversifying into non-cyclical revenue streams through closely related growth sectors. This strategic move positions Manazel to potentially manage retail assets for third parties across the UAE and beyond, while also exploring opportunities for a future listing of this new business.

Capital Mall, strategically located in Mohamed Bin Zayed City, features three stories of premium retail space totaling over 60,000 square meters of Gross Leasable Area (GLA). The mall boasts a diverse lineup of well-known tenants, including Lulu Hypermarket, Al Manara Pharmacy, UAE Exchange, Popeyes, BinSina Pharmacy, Malabar Gold & Diamonds, Axiom Telecom, McDonald’s, Il Forno, and Baskin Robbins. Recently, Capital Mall signed new leases with Action Zone for a 3,000 square meter children’s entertainment center, alongside additional stores such as Etisalat and Al Jaber Optical in the pipeline.

In the thriving Al Reef Community, which is home to nearly 17,000 residents, the retail component encompasses 8,778 square meters of GLA, offering a wide range of services, including food and beverage options and neighborhood services like laundry and pharmacies. Notable retailers currently operating include Select Market, 800 Pizza, Just Kabab, and Il Forno, with new arrivals on the way, such as Royal Orchid, Costa Coffee, Ibn Sina Medical Center, and Al Manara Pharmacy.

Waleid Gamal Eldien, Manazel’s Chief Investment & Commercial Officer, remarked, “In line with our strategy, we are leveraging our expertise in the residential and commercial real estate sectors by launching Manazel Malls to manage all of our retail assets. We have assembled a skilled team to lead this subsidiary and ensure optimal performance while generating recurring revenue streams across our real estate portfolio. We are committed to our ongoing growth and excited about the significant opportunities in the evolving market sectors that Manazel continues to explore. We look forward to providing updates on further developments in due course.”