Abu Dhabi Commercial Bank (ADCB) has signed an agreement to divest 80 per cent stake in its wholly owned property management subsidiary Abu Dhabi Commercial Properties (ADCP) to Nine Yards Plus Holding (Nine Yards Plus), a real estate subsidiary of EIH Ethmar International Holding PJSC (EIH).
The transaction values Abu Dhabi Commercial Properties at Dh591 million and the bank will register a gain of approximately Dh490 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 per cent 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, said: “ADCB is proud to have built ADCP into a major property management services provider. This transaction 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, said: “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.”
Nine Yards Plus Holding is the real estate vertical of EIH, a rapidly growing investment holding company headquartered in Abu Dhabi operating in nine different verticals, including real estate, energy, technology, alternative investments, hospitality, healthcare, travel & tourism, financial services, automotive & trading.
Established in 2006, ADCP is a leading property management service company serving landlords and currently manages approximately 51,000 units across 1,900 properties. ADCP will retain its separate corporate legal status and brand, ensuring continuity of its processes, operations and services, to best serve its clients. The property management services company will continue to leverage ADCB’s strong franchise, financial expertise and business relationships, while benefiting from the real estate expertise and growth trajectory of Nine Yards Plus Holding.
Barclays Bank, through its investment bank, acted as the sole financial adviser to ADCB on the transaction, Deloitte advised on sell side due diligence, and Clifford Chance acted as legal advisers to ADCB. Grant Thornton, Alvarez and Marsal and Al Tamimi & Co. assisted Nine Yards Plus on buy side due diligence and legal advice respectively.