ADQ and IHC Capital Holding to Create a Real Estate Powerhouse

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ADQ, the renowned Abu Dhabi-based investment and holding company, and IHC Capital Holding, have jointly submitted a compelling offer to merge their esteemed real estate assets, taking a significant stride towards forming the colossal entity, Q Holding.

The proposed merger encompasses ADQ’s complete ownership of Abu Dhabi National Exhibitions Company (Adnec) and its majority ownership interest in Modon Properties, alongside IHC Capital’s entire interest in Modon, consolidating a diverse portfolio of real estate developments, venues, land plots, and hospitality assets under one roof.

ADQ and IHC Capital Holding to Create a Real Estate Powerhouse
ADQ and IHC Capital Holding to Create a Real Estate Powerhouse

The combined group’s potential market capitalization is estimated to be approximately Dh44 billion (approximately $12 billion), illustrating the scale and scope of their forthcoming impact on the real estate landscape.

Following the completion of the proposed transaction, ADQ and IHC Capital will receive a convertible instrument convertible into approximately 9,491 million ordinary shares in the capital of Q Holding, with a conversion rate of Dh2.70 per share. The offer implies an equity valuation of approximately Dh18.5 billion for Q Holding.

Post-merger, ADQ and IHC Capital would respectively hold approximately 38.7 per cent and 19.4 per cent of the entire issued share capital of Q Holding.

ADQ and IHC Capital Holding to Create a Real Estate Powerhouse
ADQ and IHC Capital Holding to Create a Real Estate Powerhouse

Mohamed Hassan Alsuwaidi, the UAE Minister of Investment and MD and CEO at ADQ, expressed his confidence in the deal, stating, “This proposed offer provides a unique opportunity to generate value by bringing together key real estate and hospitality assets, creating an Abu Dhabi champion that fuels its ambitions. The combined assets would benefit from increased scale and new revenue opportunities that will position it well for future growth.”

ADQ and IHC Capital Holding to Create a Real Estate Powerhouse
ADQ and IHC Capital Holding to Create a Real Estate Powerhouse

Syed Basar Shueb, IHC’s CEO and Managing Director, shared the vision of strategic alignment, “We firmly believe that the proposed transaction of consolidating Abu Dhabi’s leading tourism and real estate assets into Q holding will prove to be significantly beneficial to the growth and development of the industry. We envision this as a strategic alignment that will not only magnify our capacity for exceptional real estate development but also effectively bridge the gap between tourism and real estate sectors that are poised for further growth and expansion.”

The proposed merger sets the stage for an exciting new chapter in the real estate sector, bolstering Abu Dhabi’s standing as a thriving hub of development and growth. The industry eagerly awaits the potential formation of Q Holding and its promising journey ahead.

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