ABU DHABI: Abu Dhabi Commercial Bank (ADCB) has signed an agreement to divest 80 percent stake in its wholly owned property management subsidiary Abu Dhabi Commercial Properties (ADCP) to Nine Yards Plus Holding, a real estate subsidiary of EIH Ethmar International Holding (EIH).

The transaction values Abu Dhabi Commercial Properties at AED 591 million and the Bank will register a gain of approximately AED 490 million subject to closing conditions before the end of December 2023.

The sale of the majority stake, while unlocking significant value for shareholders, aligns with ADCB’s strategy to focus on the expansion of its core banking businesses and provides a strong strategic platform for further growth of ADCP.

ADCB will retain a 20 percent stake in ADCP post transaction and will continue its partnership via a long-term relationship agreement.

Ala’a Eraiqat, Group Chief Executive Officer of ADCB, commented, ‘ADCB is proud to have built ADCP into a major property management services provider. This transa
ction unlocks substantial value for ADCB shareholders, while ensuring that ADCP is well positioned to achieve further growth through our strategic partnership with Nine Yards Plus. I would like to take this opportunity to express appreciation to ADCP’s clients, employees and business partners for supporting the continued success of the company.’

Ali El Gebely, Managing Director and Group Chief Executive Officer of EIH, added, ‘We are delighted to announce the acquisition of a majority stake in ADCP, a market leader in property management services in Abu Dhabi. ADCP will complement the ambition of Nine Yards Plus to be at the forefront of shaping future lifestyles in the UAE and wider region. We look forward to continuing our partnership with ADCB to further develop this platform to create further value and provide premium service to our clients.’

Source: Emirates News Agency