Financial service provider Abu Dhabi Commercial Bank (ADCB) signed a deal, on Thursday, to sell 80% of stakes of its subsidiary, Abu Dhabi Commercial Properties (ADCP) to Nine Yards Plus Holding, a subsidiary of Ethmar International Holding PJSC (EIH).
The deal is valued at $160.9 million (AED 591 million) of ADCP and the bank will register a profit of about $133.4 million (AED 490 million) which is expected to close before the end of December 2023, said ADCB.
The parent firm said, the aim of this deal is to unlock important values for its stakeholders, which aligns with its strategy. Additionally, it looks to expand the banking business while providing a strong platform for the growth of ADCP.
ADCB also said it will retain 20% of ADCP’s stake and will continue its partnership on a long-term relationship agreement. Additionally, ADCP will retain its separate corporate legal status and brand, ensuring the continuity of its processes, operations, and services, added the firm.
The company said, its subsidiary 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.
“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,” said Ali El Gebely, executive chief of EIH.
To read more articles on Real Estate, head to this link.
