Abu Dhabi Commercial Bank has signed an agreement to divest 80% stake in its wholly owned property management subsidiary Abu Dhabi Commercial Properties to Nine Yards Plus Holding, a real estate subsidiary of EIH Ethmar International Holding.
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% stake in ADCP post transaction and will continue its partnership via a long-term relationship agreement.
Nine Yards Plus Holding is the real estate vertical of EIH, a rapidly growing investment holding company headquartered in Abu Dhabi operating in 9 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 advisor to ADCB on the transaction, Deloitte advised on sell side due diligence, and Clifford Chance acted as legal advisors to ADCB. Grant Thornton, Alvarez and Marsal and Al Tamimi & Co. assisted Nine Yards Plus on buy side due diligence and legal advice respectively.
Also published on Medium.
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