ADF to expand service network

Mortgage lender Abu Dhabi Finance (ADF) plans to focus on expanding its network of service centre outlets in 2010, CEO Philip Ward has revealed.

"We will add more service centres and increase the number of partners involved in property development," he told Emirates Business.

"I think you will see ADF continue to expand its relationships with more developers through the year, therefore widening our portfolio. Our other expansion focus will be our service centre outlets – and we expect to add to new customer options during the year."

Ward said particular emphasis would be given to partnering with developers that have projects scheduled for delivery this year.

"We are optimistic about 2010," he said.

"This year the market will see the delivery of a good number of homes from the major new developers, and we see that providing a strong boost to the demand for mortgage finance," he added.

Ward said ADF, which is 52 per cent owned by Mubadala Development Company, covered 70 per cent of the capital's property market and aimed to take a substantial stake in the remaining 30 per cent by the middle of this year.

About the company's performance in 2009, he said: "We were pleased with our performance during 2009, our first year of operations. ADF was set up to offer a new mortgage choice for home purchasers in the emirate and the response levels have shown there really is a market need for this business."

In August last year, ADF announced it had arranged Dh600 million of lending and forecast it would top the Dh1 billion mark by the end of this year.

Ward said the global economic crisis had not had a significant effect on the firm.

"Since ADF is a new business – we started operations in late 2008 – we were not impacted by the global situation as others may have been. For us it probably restricted growth to an extent, but the key factor is that we still grew throughout the year."

ADF was established in November 2008 with an initial capital of Dh500m as a five-way joint venture between Mubadala, Aldar, Abu Dhabi Commercial Bank (ADCB), Tourism Development and Investment Company (TDIC) and Sorouh with the aim of supporting and sustaining the emirate's booming real estate industry.

In November last year, to commemorate its first anniversary, the company launched a special lending solution called 'Advantage' that was developed exclusively for Marina Square properties on Abu Dhabi's Reem Island.

The mortgage solution offers a 1.1 per cent discount off prevailing interest rates for one year, which means interest rates start from 7.15 per cent.

Marina Square is a self-contained residential and commercial community built around a circular marina on Reem Island.

The community, which is master developed by Tamouh, will house all facilities and amenities expected from such a prestigious development.

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