Abu Dhabi developers consider merger

30 August 2017

Talks are at an advanced stage

Abu Dhabi developers Reem Investments and Eshraq Properties are in advanced negotiations over a potential merger of the two companies.

The merger, which is still subject to final deal terms and regulatory approvals, will see Reem Investments acquire new shares to be issued by Eshraq Properties, which is listed on the Abu Dhabi Stock Exchange (ADX).

Eshraq is being advised by the local Shuaa Capital, while Reem Investments is being advised by First Abu Dhabi Bank.

Earlier this year, MEED reported that Eshraq was in negotiations with local investment house Mubadala Development Company to form a joint real estate development firm for various projects in Abu Dhabi. The two companies agreed to jointly develop plots of land in the emirate owned by Mubadala on Al-Maryah Island and by Eshraq Properties on Al-Reem Island, according to a separate joint statement.

Established in 2006, Eshraq has a diverse portfolio of properties and development opportunities in both Abu Dhabi and Dubai, including Marina Rise on Reem Island and The Gateway in Sas al-Nakhl.

The company is also the founding member of the Etihad REIT, an Abu Dhabi-based investment trust that is looking to tap capital markets to raise as much as $500m by listing its shares on one of the UAE stock markets.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.