Abu Dhabi Aims to Merge Key Real Estate Assets, Creating AED 44B ($12B) Property Powerhouse to Boost Economic Transformation Efforts. In a bid to bolster the emirate’s economic transformation initiatives, Abu Dhabi is considering consolidating its crucial real estate assets under a single entity.
As part of this plan, ADQ, the investment and holding company, and a unit of the local conglomerate International Holding Company have jointly proposed combining their stakes in Modon Properties into IHC’s Q Holding.
The proposed agreement also entails ADQ including its shareholding in Abu Dhabi National Exhibitions Company (Adnec) within Q Holding, amplifying the potential impact of the merger. The envisioned outcome is the creation of a vast real estate, hospitality, events, and catering platform, strengthening Abu Dhabi’s position as a prominent leader in integrated real estate and hospitality.
The unified entity will boast an extensive portfolio comprising real estate developments, venues, land plots, and hospitality assets, thereby elevating Abu Dhabi’s standing in the region’s real estate and hospitality landscape.
“This proposed offer provides a unique opportunity to generate value by bringing together key real estate and hospitality assets, creating an Abu Dhabi champion that fuels its ambitions,” Mohamed Alsuwaidi, managing director and chief executive at ADQ, said.
“The combined assets would benefit from increased scale and new revenue opportunities that will position it well for future growth.”
Uniting Key Assets
As a component of the agreement, Q Holding will grant ADQ and IHC Capital an instrument that is convertible into approximately 9.49 billion shares in the capital of Q Holding. They have set the conversion price for this instrument at AED 2.70 per share. The offer places a value of AED 18.5B on Q Holding, according to the company’s statement. Once the transaction is finalized, ADQ and IHC Capital will respectively hold 38.7 per cent and 19.4 per cent of the total issued share capital of Q Holding, according to The National News.
“The proposed transaction of consolidating Abu Dhabi’s leading tourism and real estate assets into Q Holding will prove to be significantly beneficial to the growth and the development of the industry,” Syed Shueb, IHC’s chief executive and managing director, said.
“We envision this as a strategic alignment that will not only magnify our capacity for exceptional real estate development but also effectively bridge the gap between tourism and real estate sectors that is poised for further growth and expansion.”
In a separate announcement on Wednesday, Q Holding acknowledged the offer from ADQ and IHC Capital and stated that its board would carefully review the proposed transaction before providing any recommendation to shareholders.
“If an agreement is reached between the involved parties, a general assembly meeting of Q Holding is scheduled for November to consider approving the transaction,” Q Holding communicated in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
ADQ, established in 2018, possesses a diverse portfolio of major enterprises, investing in various sectors such as energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics.
ADQ and IHC Capital Join Forces
IHC, playing a crucial role in the UAE’s economic diversification efforts, focuses its investments in agriculture, brokerage and financial services, entertainment, healthcare, industries, retail, real estate, energy, and maritime industries. The conglomerate has more than 422 subsidiaries, including Alpha Dhabi Holding, Q Holding, International Securities, Al Seer Marine, and Multiply Group. It has actively pursued strategic investments to expand its asset base, becoming one of the most valuable listed holding companies in the Middle East. By the end of 2022, the company’s total assets reached AED 227.5B, significantly increasing from AED 88.98B at the end of 2021.
Earlier this year, ADQ and IHC unveiled plans to establish the largest multi-asset class investment manager in the region. Q Holding, established in 2005 and formerly known as Al Qudra Holding, operates across diverse sectors such as property, services, and hospitality, with investments diversified through its subsidiaries. The company has been actively expanding its portfolio in recent times.
