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Abu Dhabi is considering consolidating key real estate assets under one single entity, which would establish a $12 billion property giant and create one of the region’s largest real estate and hospitality platforms. 

ADQ, Abu Dhabi’s investment and holding company, and a unit of local conglomerate International Holding Company have submitted an offer that aims to combine their shares in Modon Properties into IHC’s Q Holding. 

Under the proposal, ADQ will similarly add its shareholding in Abu Dhabi National Exhibitions Company (ADNEC) into the Q holding. The consolidation will also involve an extensive portfolio of real estate developments, venues, and hospitality assets. 

“The combined assets would benefit from increased scale and new revenue opportunities that will position it well for future growth,” says Mohamed Alsuwaidi, managing director and chief executive at ADQ.

The combined group would have an implied market capitalization of approximately $11.98 billion, said the companies. The transaction structure would also see Q Holding issuing a convertible instrument to ADQ and IHC Capital, which would convert into approximately 9,491 million shares in the capital of Q Holding at $0.74 per share. Overall, the offer suggests a nearly $5 billion equity valuation for Q Holding. ADQ and IHC Capital would own 38.7% and 19.4% of the entire share capital of Q Holding.

Separately, in a statement, Q Holding confirmed that it received the offer from ADQ and IHC Capital and said that its board will consider the proposal before making any recommendations to shareholders.