The merger, within the Aldar Estates platform, creates the Middle East region’s largest property and facilities management company.
Under the agreement, Aldar will hold a majority stake and retain control of Aldar Estates with the remaining shareholding held equally between IHC and Adnec Group, the companies said in a statement to the Abu Dhabi Securities Exchange on Tuesday.
As part of the agreement, Eltizam Asset Management Group, a property and facilities management services company that operates across the GCC and is jointly owned by IHC and Adnec Group, will merge with Aldar Estates.
Aldar Estates completed the acquisition of Basatin Landscaping Services this year, which builds on acquisitions made in 2022, including Spark Security Services, Mace Macro Technical Services, Pactive Sustainable Solutions, and Saga International Owner Association Management Services.
The new deal will boost Aldar Estates' portfolio of residential units under management to about 135,000 from 77,000. That includes prime retail and commercial spaces with a gross leasable area of more than one million square metres, and facilities management contracts valued at about Dh2.5 billion ($681 million).
The consolidation will give the platform “significant scale to drive its strategic and competitive strengths, leveraging operational and revenue synergies as well as its expanded strategic investor base to accelerate its growth across the UAE and the wider region”, the statement said.
“The platform will also target new strategic opportunities, solidifying its leading position in the region’s property and facility management industry.”
Aldar Estates’ expanded platform will contribute significantly to Aldar Investment’s growth and continue to be a focal service point for Aldar’s real estate offerings in the market, the statement said.
Founded in 2009, Eltizam operates in the UAE, Saudi Arabia, Egypt and Oman. It provides clients with property and facilities management solutions, professional services and proptech capabilities.
Eltizam’s portfolio of businesses contributed to Aldar Estates includes Colliers, Kingfield, Inspire Integrated, 800TEK, OrionTEK and PropEzy.