Q holding
Q Holding will see likes of ADNEC and Modon Properties take a place in its portfolio. There are others too. Image Credit: Supplied

Dubai: A transaction involving some of the biggest real estate and corporate names in Abu Dhabi is starting to take shape, which in all-share deal will see assets such as Abu Dhabi National Exhibitions Co. and Modon Properties changing hands.

These assets will shift to Q Holding, while the sellers are ADQ Real Estate & Hospitality Investments and IHC Capital Holding.

If everything goes according to the timeline, the mandatory bonds will be issued December 15.

How the deal is structured

To make it happen, 25.6 billion mandatory convertible bonds will be issued, which will be split into:

  • 17.08 billion convertible bonds – of Dh1 each - to be issued to the ADQ entity. This will be converted into 6.32 billion new shares in Q Holding.
  • 8.53 billion convertible bonds that will translate into 3.16 million new shares of Q Holding.

Once the deal is done, ADQ Real Estate & Hospitality Investments will have 38.72 per cent in Q, while IHC’s stake will be 19.35 per cent.

Why the deal is significant

Q Holding will emerge as one of the real estate powerhouses in the country, and one with assets outside of the country as well. The assets cut across all property types, including prestigious hotel assets too.

The company cites a bouquet of factors as making this a win-win:

  • Q Holding will enter new verticals, including exhibition venues, events, F&B, hospitality, tourism and media.
  • A diversified portfolio of assets that will help reduce risk exposure and deliver stability of revenue and long-term profitability.
  • Tap into the UK market through incorporating exhibition avenues and hospitality assets there.
  • Prime land assets that will allow for the launch of a ‘variety of real estate projects’.

In August, Q has mandated KPMG Lower Gulf to take on the valuation of the companies and assets that will come to it as part of the multi-layered transaction. And on November 20, KPMG issued the valuation report.