Mubadala to buy out partner

Mubadala Development is taking full control of a property joint venture it formed two years ago with the US developer John Buck to build commercial projects in Abu Dhabi.
Mubadala, a strategic investment company owned by the Abu Dhabi Government, said yesterday it would buy the remaining 51 per cent stake in John Buck International, the joint venture, for an undisclosed amount this month. Peter Wilding, the executive director of Mubadala Real Estate and Hospitality, said the decision was based on a "realignment" of the company's structures.
"It helps in the sense that we now have absolute control of what we're doing going forward," he said. "This isn't a divorce. This is just an opportunity for both partners to realign."
Mubadala will retain its 24.9 per cent stake in The John Buck Company in Chicago, which is involved in development, property management and advisory services.
The US company will still perform development and project management work on Sowwah Island, the new central business district of Abu Dhabi that is expected to receive its first tenants this year.
Mubadala Real Estate and Hospitality was moving away from the day-to-day management of construction sites, giving that role to subsidiaries such as John Buck International and Capitala - a joint venture with CapitaLand of Singapore. At Mubadala, the focus would be to act as a "facilitator" of projects, Mr Wilding said.
The company is directing all its efforts towards Sowwah Island and Arzanah, a mainly residential development near Zayed Stadium. Mubadala is "reviewing" its position on the MGM Grand Abu Dhabi project, which was to have included several hotels and recreational facilities on a 60-hectare plot at Mina Zayed.
Mr Wilding said there was a shift towards developing projects in areas in Abu Dhabi where infrastructure was already installed.
Sowwah Island - the project on which John Buck International is focused - is one of Abu Dhabi's most ambitious developments. It is expected to have a daytime working population of 75,000 and 30,000 residents.
 
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