Abu Dhabi Commercial Bank acquires Abu Dhabi Finance's real estate finance portfolio

Abu Dhabi Commercial Bank (the "bank") has signed an agreement to acquire the Abu Dhabi Finance Company's 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 developing the real estate finance sector.

The assets, acquired by Abu Dhabi Commercial Bank, with a total book value of approximately AED 1.130 billion as of January 31, 2021, include residential property financing of approximately 76% and commercial property financing of 24%;

Funds are distributed approximately 50% in the Emirate of Abu Dhabi, while the rest is distributed in the Emirate of Dubai and the other Emirates.

The acquisition will enhance the growth of ADCB's real estate financing business, and provide an opportunity for a wider segment of customers to benefit from its wide range of distinguished products and services.

ADFC customers are expected to switch to ADCB's banking services platform during the first half of 2021, subject to obtaining regulatory approvals from the UAE Central Bank and the regulatory authorities.

On this occasion, Arup Mukapaday, Head of Consumer Banking Group at Abu Dhabi Commercial Bank, said: “The acquisition of this portfolio will enhance 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 distinguished and pioneering real estate financing solutions in the United Arab Emirates, as well as investing in the technical and digital infrastructure to simplify and speed up procedures. The bank has also entered into agreements with leading real estate companies to provide comprehensive and appropriate real estate financing packages to customers.

On his part, Chris Taylor, Chief Executive Officer of Abu Dhabi Finance, said: “Abu Dhabi Finance has played a pioneering role in the real estate finance sector in the UAE for more than ten years, and has built a strong reputation for itself and a distinguished portfolio of assets, confirming its exceptional approach to customer service and risk management. We would like to thank all of our customers whom we have been proud to serve throughout those years, and I am absolutely sure that they will receive the same distinguished service after moving their loans to ADCB. "

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