Abu Dhabi Commercial Bank (ADCB) has signed an agreement to divest 80 per cent 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 (EIH).

The transaction values Abu Dhabi Commercial Properties at Dhs591 million and the Bank will register a gain of approximately Dhs490 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 per cent stake in ADCP post transaction and will continue its partnership via a long-term relationship agreement.

Ala’a Eraiqat, Group Chief Executive Officer of ADCB, commented, “ADCB is proud to have built ADCP into a major property management services provider. This transaction unlocks substantial value for ADCB shareholders, while ensuring that ADCP is well positioned to achieve further growth through our strategic partnership with Nine Yards Plus. I would like to take this opportunity to express appreciation to ADCP’s clients, employees and business partners for supporting the continued success of the company.” Ali El Gebely, Managing Director and Group Chief Executive Officer of EIH, added, “We are delighted to announce the acquisition of a majority stake in ADCP, a market leader in property management services in Abu Dhabi.