ABU DHABI, UAE: AD Ports Group (ADX: ADPORTS) announced the merger of KEZAD Communities with Al Eskan Al Jamae LLC (EAJ) to create Abu Dhabi’s largest integrated staff accommodation company in which AD Ports Group will retain a controlling majority stake.
The combined entity will have an equity value of approximately AED 7 billion, positioning it as one of the largest such businesses in the UAE.
For the 9 months ended 30 September 2022, revenue 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 equity share swap with no cash exchange. KEZAD Communities is part of the Khalifa Economic Zones Abu Dhabi – KEZAD Group, under AD Ports Group’s Economic Cities & Free Zones. KEZAD Communities business dates back to 2005 and was operated previously under ZonesCorp.
Al Eskan Al Jamae LLC (EAJ), a leading staff accommodation owner and operator in Abu Dhabi, is a real estate development and management company that owns and operates ICAD Residential City in Mussafah, Abu Dhabi. The residential city has 58,000 beds along with recreational amenities such as restaurants and a mall.
EAJ also operates several fully owned subsidiaries offering support services, including Khadamat, a facilities management company, EJRC, a property management company, and Your Laundry.
Following the merger, KEZAD Communities will be the largest staff accommodation company in Abu Dhabi with owned and managed capacity of 135,000 beds.
The combined entity will enable KEZAD Group to provide customers with integrated staff accommodation solutions comprising amenities and facilities (medical centres, gardens, sports areas, dining 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 look for opportunities to leverage our assets and fully support the growth of priority industrial sectors in line with the vision of our wise leadership.
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.
The merger enhances KEZAD Communities’ staff accommodation business and provides an opportunity to enhance the quality and sustainability of staff communities across the UAE.
We look forward to continuing the development of services in this critical market and contributing to the wider national goal of economic 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 accommodation market.
EAJ has pioneered a progressive and sustainable approach to the delivery of much-needed group housing development in Abu Dhabi and across the UAE, and this legacy will be extended through the expertise, resources, and reach of KEZAD Group moving forward.”