Abu Dhabi Commercial Bank ( ADCB )has agreed to sell 80% of its stake in Abu Dhabi Commercial Properties (ADCP) to Nine Yards Plus Holding, a subsidiary of Ethmar International Holding based in Abu Dhabi, the bank made the announcement.
The third-largest lender in the UAE, in terms of assets, had received a binding offer for the majority stake acquisition in ADCP from Nine Yards Plus the previous month. The transaction values ADCP at AED 591M ($161M), with ADCB set to gain nearly AED 490M ($133.4M) upon meeting closing conditions before the end of December.
ADCB will retain a 20% stake in ADCP and continue its partnership through a long-term relationship agreement. The company priced the IPO at the top of the previously announced range, selling shares at SAR 25 and raising SAR 831M amid robust investor demand.
Establishing itself in January 2006, ADCP operates as the wholly owned property management services subsidiary of ADCB, overseeing approximately 51,000 units across 1,900 properties. In 2019, ADCP integrated Union National Bank’s Al Wifaq Properties and the real estate division of Al Hilal Bank, expanding its customer reach and portfolio.
Ali El Gebely Foresees Nine Yards Plus Shaping Future Lifestyles
According to Ali El Gebely, the managing director and group chief executive of EIH, Nine Yards Plus aims to be a leading force in shaping future lifestyles in the UAE and the broader region. He expressed anticipation for continuing the partnership with ADCB to develop the platform further, creating additional value and delivering premium services to clients.
Nine Yards Plus is the real estate arm of EIH, operating in various sectors such as property, energy, technology, alternative investments, hospitality, healthcare, travel and tourism, financial services, automotive, and trading.
Barclays Bank served as the exclusive financial adviser to ADCB for the transaction, Deloitte provided advice on sell-side due diligence, and Clifford Chance acted as legal advisers to the lender, according to The National News.
In the third quarter, ADCB reported a 22% increase in net profit to AED 1.94B. Total net interest income, reflecting earnings from lending activities minus depositor interest, saw a 28.6% surge to AED 2.65B. Net income from Islamic financing and investing products rose by 6.2% to AED 531M. By the end of September, the bank had increased its assets by 7.8% to nearly AED 537B.
