Investment Corporation of Dubai (ICD) has signed a deal with shareholders in Spanish property group Colonial to buy its investment properties, valued at more than E9bn (£6.9bn).

The acquisition will take place after Colonial is split in two, one holding the company's investment portfolio in Spain and France and another one holding its landbank and developments.

ICD will take over the investments in Spain and France, while a new company would be set up to own the developments, which are valued at E2.1bn (£1.6bn) but have E962m (£736m) of debt.

The deal comes with a number of conditions, which include a clause that the core shareholders' main creditors must guarantee Colonial's shares and that an accord must be reached on refinancing of Colonial's E9bn (£6.9bn) of debt.

The agreement must be approved by Colonial's board, be cleared by competition authorities and will be cancelled if there are any 'adverse' changes within five months of the agreement.

The deal has been accepted by Colonial's two core shareholders Realtor Nozar with 12.3% and Luis Portillo with 39.65%, as well as by Alicia Koplowitz Omega Capital with 8.91%.