Abu Dhabi Commercial Bank (ADCB) has formalized an agreement to divest an 80% 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 PJSC (EIH).
The transaction, valued at Dh591 million, is expected to result in a gain of approximately Dh490 million for ADCB, contingent on closing conditions before the end of December 2023.
Unlocking Value and Strategic Alignment:
The majority stake sale aligns with ADCB’s strategic focus on expanding its core banking businesses and unlocking substantial value for shareholders. ADCB will retain a 20% stake in ADCP post-transaction, fostering a long-term relationship through a strategic partnership.
Ala’a Eraiqat, Group CEO of ADCB, expressed pride in ADCP’s growth and success, highlighting the transaction’s value for ADCB shareholders. He thanked ADCP’s clients, employees, and partners for their support.
Ali El Gebely, MD and Group CEO of EIH, expressed delight in the acquisition, emphasizing ADCP’s role as a market leader in property management services in Abu Dhabi. He sees ADCP complementing Nine Yards Plus’ vision of shaping future lifestyles in the UAE and beyond.
Nine Yards Plus Holding’s Diverse Portfolio:
Nine Yards Plus Holding, a real estate vertical of EIH, operates across nine verticals, including real estate, energy, technology, and more.
The acquisition of ADCP aligns with Nine Yards Plus Holding’s ambition to contribute significantly to the evolving lifestyles in the UAE and the wider region.
Continued Operations and Brand Identity:
Established in 2006, ADCP, a leading property management service company, will maintain its separate corporate identity and brand.
Currently overseeing around 51,000 units across 1,900 properties, the company will continue leveraging ADCB’s financial expertise and business relationships while benefiting from Nine Yards Plus Holding’s real estate acumen and growth trajectory.
Barclays Bank served as the sole financial adviser to ADCB, with Deloitte providing sell-side due diligence and Clifford Chance acting as legal adviser. On the buy side, Grant Thornton, Alvarez and Marsal, and Al Tamimi & Co. assisted Nine Yards Plus with due diligence and legal advice.
