Abu Dhabi Commercial Bank recently signed a Memorandum of Understanding with the Finance Department of the Government of Abu Dhabi in accordance with which ADCB will acquire responsibility for the management of the Commercial Buildings Financing Scheme (CBFS) previously known as the Department of Commercial Buildings and Social Services. This activity will now be handled through a newly incorporated, wholly owned subsidiary of ADCB, “Abu Dhabi Commercial Properties L.L.C.”.
The DSSCB is a Government initiative which has been in operation for over 25 years and administered under the auspices of the Crown Prince of Abu Dhabi. Under the Scheme, Abu Dhabi Nationals are granted individual plots of land in the Emirates of Abu Dhabi for the purpose of constructing commercial and/or residential buildings on those plots of land. The Executive Council of Abu Dhabi then sanctions loans to the individuals in order to meet 100% of the constructions costs.
Abu Dhabi Commercial Properties now oversees the construction of the buildings and when completed manages the properties with a pre-determined portion of the annual rental income being used for debt service. The remaining rental income is allocated as a reserve for future maintenance expenditures or given to the individual as a source of income.
The business for this project can therefore be divided into two distinct activities – Construction Management and Property Management. Abu Dhabi Commercial Properties has assumed responsibility of both. In terms of numbers, we expect on average 500 new building approvals for each, we have over 750 projects on hand at the moment. Existing buildings to be transferred covering 55 Million sq/ft. of buildings comprising of villas, apartments, retail outlets, offices and industrial structures, all of which have to be migrated to Abu Dhabi Commercial Properties.
Abu Dhabi Commercial Properties commenced the real estate management of ADCB branch network, ADCB Head Office and portfolio in June 2007 thus delivering all services including fully integrated Facilities Management and Help Desk.