Emirates-Abu Dhabi Commercial acquires the real estate finance portfolio of Abu Dhabi Finance Company

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Source: (MENAFN – Al-Bayan)

  • Abu Dhabi – Al-Bayan

Date: March 01, 2021 Abu Dhabi Commercial Bank has signed an agreement to acquire the Abu Dhabi Finance real estate finance portfolio, which includes about 1,000 mortgage loans.

This deal will contribute to the growth of the bank’s business in the retail and SME banking sector, which is in line with its strategy to focus on business opportunities in the UAE and its conservative approach to risk management. Abu Dhabi Finance was established in 2008 as a company specialized in providing financing and mortgage solutions to clients primarily in the Emirate of Abu Dhabi. Over the past years, the company has played a major role in the development of the real estate finance sector.

The assets, acquired by Abu Dhabi Commercial Bank, amounting to a total book value of approximately AED 1.13 billion as of January 31, 2021, and include residential property financing by approximately 76% and commercial property financing by 24%; Funds are distributed about 50% in the Emirate of Abu Dhabi, while the rest is distributed in the Emirate of Dubai and the other Emirates.

The acquisition will boost the growth of ADCB’s real estate finance business, and provide an opportunity for a wider segment of customers to benefit from its wide range of products and services. It is expected that Abu Dhabi Finance Company customers will be transferred to ADCB’s banking services platform during the first half of 2021, subject to obtaining regulatory approvals from the Central Bank of the United Arab Emirates and the regulatory authorities.

“The acquisition of this portfolio will boost the growth of the real estate loan portfolio, thus diversifying the asset base and broadening the customer base. Over the past years, the bank has invested heavily in providing real estate financing solutions,” said Arup Mukhabaday, Head of Consumer Banking Group at ADCB. Distinguished and pioneering in the United Arab Emirates, as well as investing in the technical and digital infrastructure to simplify and expedite procedures, the bank has also concluded agreements with leading real estate companies to provide comprehensive and appropriate real estate financing packages to customers.

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