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AD Ports Group has announced the merger of Kezad Communities with Al Eskan Al Jamae (EAJ) to create a AED7 billion (US$1.91 billion) integrated staff accommodation company, the largest in Abu Dhabi. AD Ports Group will retain a majority stake in the company.
For the nine months ended September 30, 2022, Kezad Communities had revenue of AED 275 million and EAJ had revenue of AED 205 million. For the nine months ended September 30, 2022, Kezad Communities had EBITDA of AED 168 million and EAJ of AED 120 million.
equity swap
The transaction will be through an equity swap, not a cash exchange.
Kezad Communities is part of the Khalifa Economic Zones Abu Dhabi – Kezad Group, which is part of the Economic Cities and Free Zones of the AD Ports Group. Kezad Communities business dates back to 2005 and was previously operated by ZonesCorp.
EAJ, Abu Dhabi’s leading employee accommodation owner and operator, 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 and recreational facilities such as restaurants and shopping malls. EAJ also operates several wholly-owned subsidiaries that provide support services, including facilities management company Khadamat, property management company EJRC and Your Laundry.
Bed capacity 135,000
After the merger, Kezad Communities will be Abu Dhabi’s largest employee accommodation company, owning and managing 135,000 beds. The combined entity will enable Kezad Group to offer clients a comprehensive staff accommodation solution, including facilities and facilities (medical centre, gardens, sports areas, canteen and mosque) and services (supermarket and laundry).
Abdullah Al Hameli, Chief Executive Officer, Economic Cities and Free Zones, AD Ports Group, said: “The Kezad Group continues to look for opportunities to leverage our assets and fully support the development of priority industrial sectors in line with the vision of our wise leadership. The merger with EAJ is a significant Expanded the number of employee accommodation assets under our control and expanded the range of support services we can provide to our clients.
“This merger strengthens Kezad Communities’ staff accommodation business and presents an opportunity to improve the quality and sustainability of the UAE’s staff community. We look forward to continuing to grow our services in this key market and contribute to the wider goal of diversifying the country’s economy.” contribute.”
Dr Saeed Khalfan Al Kaabi, Chief Executive Officer of EAJ, said: “Kezad Communities has made significant strides in reshaping the employee accommodation market. EAJ is pioneering an incremental and sustainable approach to delivering much-needed collective housing developments in Abu Dhabi and across the UAE. A legacy that will continue to grow forward through the expertise, resources and reach of the Kezad Group.” — trade arab news agency
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