KEZAD Communities and EAJ merge to form new $1.9bn staff accommodation company
AD Ports Group will retain a controlling majority stake in the new entity
AD Ports Group has announced a merger of KEZAD Communities with Al Eskan Al Jamae (EAJ) to create what’s billed as Abu Dhabi’s largest integrated staff accommodation company. The firm said that the combined entity will have an equity value of approximately US $1.9bn and noted it will retain a controlling majority stake.
According to a statement, for the nine months ended 30 September 2022, revenue was $74.8mn for KEZAD Communities and $56mn for EAJ. For the nine months ended 30 September 2022, EBITDA was $46mn for KEZAD Communities and $32.6mn for EAJ. The transaction will be affected through an equity share swap with no cash exchange, AD Ports Group noted.
“KEZAD Group continues to look for opportunities to leverage our assets and fully support the growth of priority industrial sectors in line with the vision of our wise leadership. This merger with EAJ significantly expands the number of staff accommodation assets under our control and extends the range of support services we can offer to our customers,” said Abdullah Al Hameli, CEO of Economic Cities & Free Zones, AD Ports Group.
In September 2022, KIZAD inked a deal to establish Abu Dhabi’s first EV assembly facility.
KEZAD Communities is part of the Khalifa Economic Zones Abu Dhabi – KEZAD Group, under AD Ports Group’s Economic Cities & Free Zones. KEZAD Communities business dates back to 2005 and was operated previously under ZonesCorp. EAJ is a real estate development and management company that owns and operates ICAD Residential City in Mussafah, Abu Dhabi. The residential city is said to have 58,000 beds along with recreational amenities such as restaurants and a mall. EAJ also operates several fully owned subsidiaries offering support services, including Khadamat, a facilities management company, EJRC, a property management company, and Your Laundry, the statement noted.
Al Hameli added, “The merger enhances KEZAD Communities’ staff accommodation business and provides an opportunity to enhance the quality and sustainability of staff communities across the UAE. We look forward to continuing the development of services in this critical market and contributing to the wider national goal of economic diversification.”
Following the merger, KEZAD Communities will be the largest staff accommodation company in Abu Dhabi with owned and managed capacity of 135,000 beds. The combined entity will enable KEZAD Group to provide customers with integrated staff accommodation solutions comprising amenities and facilities (medical centres, gardens, sports areas, dining halls, and mosques) and services (supermarket and laundry), the statement pointed out.
In mid-November 2022, AJ Steel said it would grow operations in KEZAD with a 96,000sqm facility expansion.
Dr. Saeed Khalfan Al Kaabi, CEO of EAJ concluded, “We are proud to join forces with
KEZAD Communities, which has made significant strides to reshape the staff accommodation market. EAJ has pioneered a progressive and sustainable approach to the delivery of much-needed group housing development in Abu Dhabi and across the UAE, and this legacy will be extended through the expertise, resources, and reach of KEZAD Group moving forward.”
In late-November 2022, KEZAD and Noon broke ground on the ‘UAE’s largest e-commerce fulfilment centre’.
