AD Ports Group’s KEZAD Communities is merging with Al Eskan Al Jamae (EAJ) to create a multibillion-dirham staff accommodation company.
Owned by sovereign wealth fund ADQ, AD Ports Group will retain a “controlling majority stake” in the new combined entity, which will have an equity value of approximately AED 7 billion ($1.9 billion), according to a statement on Tuesday.
“This transaction would be effected through an equity share swap with no cash exchange,” the statement said.
KEZAD is part of the Khalifa Economic Zones Abu Dhabi (KEZAD Group), under AD Ports Group’s Economic Cities & Free Zones. EAJ owns and operates ICAD Residential City in Mussafah, Abu Dhabi, which has 58,000 beds, as well as restaurants and a mall.
The new company will be the largest staff accommodation firm in the UAE capital with owned and managed capacity of 135,000 beds.
It will enable KEZAD Group to provide customers with staff accommodation solutions that also feature amenities and facilities, including medical centres, gardens sports areas, dining halls, mosques and other services, such as supermarket and laundry.
“This merger with EAJ significantly expands the number of staff accommodation assets under our control and extends the range of support services we can offer to our customers,” said Abdullah Al Hameli, CEO of Economic Cities & Free Zones, AD Ports Group.
(Writing by Cleofe Maceda; editing by Seban Scaria)