The deal would create the second largest listed real estate developer in Abu Dhabi. (File photo)
Eshraq Properties and Reem Investments have announced that they are in talks to join forces to create a mega-listed real estate company in Abu Dhabi, UAE.
A statement said: “Discussions are at an advanced stage over a potential strategic investment in Eshraq (by way of subscription for new shares to be issued by Eshraq) in return for the acquisition of Reem’s entire business and assets (the Potential Transaction).”
This transaction will create the second largest listed real estate developer in Abu Dhabi, the statement added.
Reem was established in 2005 and is considered one of the largest and most successful real estate companies in Abu Dhabi. It also owns prime development land in Abu Dhabi.
The boards of Eshraq and Reem believe that the potential transaction is expected to be beneficial to the shareholders of both companies resulting in synergies derived from integrating their operational and financial resources, as well as combining their management experience and expertise, said the statement.
The potential transaction remains subject to a number of conditions, including the final agreement of specific deal terms, including the price, as well as obtaining the required regulatory approvals.
Eshraq is being advised by Shuaa Capital and Reem Investments is being advised by First Abu Dhabi Bank on the transaction.