ABU DHABI, UAE: AD Ports Group (ADX: ADPORTS) introduced the merger of KEZAD Communities with Al Eskan Al Jamae LLC (EAJ) to create Abu Dhabi’s largest built-in staff lodging firm in which AD Ports Group will retain a controlling majority stake.
The mixed entity will have an fairness worth of roughly AED 7 billion, positioning it as one of many largest such companies within the UAE.
For the 9 months ended 30 September 2022, income was AED 275 million for KEZAD Communities and AED 205 million for Al Eskan Al Jamae LLC (EAJ). For the 9 months ended 30 September 2022, EBITDA was AED 168 million for KEZAD Communities and AED120 million for EAJ.
This transaction would be effected through an fairness share swap with no money exchange. KEZAD Communities is a half of the Khalifa Economic Zones Abu Dhabi – KEZAD Group, under AD Ports Group’s Economic Cities & Free Zones. KEZAD Communities enterprise dates again to 2005 and was operated beforehand under ZonesCorp.
Al Eskan Al Jamae LLC (EAJ), a quantity one staff lodging proprietor and operator in Abu Dhabi, is an actual property development and administration firm that owns and operates ICAD Residential City in Mussafah, Abu Dhabi. The residential metropolis has 58,000 beds together with leisure facilities such as eating places and a mall.
EAJ additionally operates a quantity of fully owned subsidiaries providing support services, together with Khadamat, a facilities administration company, EJRC, a property administration company, and Your Laundry.
Following the merger, KEZAD Communities would be the largest staff lodging firm in Abu Dhabi with owned and managed capability of 135,000 beds.
The mixed entity will allow KEZAD Group to present customers with built-in staff lodging options comprising facilities and facilities (medical centres, gardens, sports activities areas, eating halls, and mosques) and services (supermarket and laundry).
Abdullah Al Hameli, CEO of Economic Cities & Free Zones, AD Ports Group said: “KEZAD Group continues to search for alternatives to leverage our assets and fully support the expansion of precedence industrial sectors in line with the imaginative and prescient of our wise leadership.
This merger with EAJ considerably expands the variety of staff lodging assets under our administration and extends the vary of support services we can offer to our customers.
The merger enhances KEZAD Communities’ staff lodging enterprise and provides an alternative to improve the standard and sustainability of staff communities throughout the UAE.
We look ahead to persevering with the event of services on this critical market and contributing to the broader nationwide goal of financial diversification.”
Dr. Saeed Khalfan Al Kaabi, CEO of EAJ, said: “We are proud to join forces with KEZAD Communities, which has made significant strides to reshape the staff lodging market.
EAJ has pioneered a progressive and sustainable approach to the supply of much-needed group housing development in Abu Dhabi and throughout the UAE, and this legacy will be prolonged through the expertise, resources, and attain of KEZAD Group moving forward.”