Dubai: Abu Dhabi Commercial Bank has signed an agreement to acquire a portfolio of about 1,000 mortgages from Abu Dhabi Finance.
“The transaction provides further growth for ADCB’s retail and SME businesses in line with the Bank’s UAE-centric strategy and prudent risk management framework,” said ADCB in a statement on Sunday.
The assets, with a gross book value of about Dh1.130 billion as at January 31, 2021, consist of about 76 per cent residential mortgages and 24 per cent commercial mortgages. All the mortgages are conventional, with just under half of the portfolio collateralised by real estate in Abu Dhabi, and the remainder distributed across Dubai and other Emirates in the UAE.
“The Bank continues to invest significantly to provide a leading real estate finance offering. We have enhanced our digital capabilities and partnered with leading property companies to offer attractive and comprehensive home purchase packages,” said Arup Mukhopadhyay, Head of the Consumer Banking Group at ADCB.
ADF customers are expected to transfer to the ADCB banking platform during the first half of 2021, subject to the transaction receiving approval from the Central Bank of the UAE and other relevant authorities.
ADF was established in 2008 as an Abu Dhabi-focused conventional mortgage specialist and has played a key role in the development and transformation of the real estate finance sector.