UAE banks agree $245m loan for 3-tower project
Dubai, July 15, 2013
Two banks in the United Arab Emirates have signed a 900 million dirham ($245 million) loan facility to fund construction of a three-tower real estate project adjacent to Dubai's main thoroughfare.
Dubai's real estate sector has been showing signs of recovery in recent months, with prices rising and new projects being announced. Prices had tumbled by more than 50 percent from their 2008 peak at the height of the property boom.
Monday's statement from Dubai lender Emirates NBD (ENBD) said that ENBD and Abu Dhabi's First Gulf Bank had provided the funding to local developer Abdulsalam Al Rafi Group to build Burj Al Salam Towers.
The three-tower development, sited alongside the six-lane highway that runs through the heart of Dubai, would include commercial and residential towers and a hotel to be managed by Starwood Hotels under the Sheraton Dubai Tower Hotel name.
The first two towers would be completed in September, with the hotel to be ready in March 2014, the statement added.
“Burj Al Salam Towers is an important development for Abdulsalam Al Rafi Group. The project is set to become another landmark on Dubai’s property scene and add to the group’s existing portfolio of properties in Dubai. We are pleased to be working with Emirates NBD and First Gulf Bank, which have been key partners in this development,” said Abdulsalam Al Rafi, group chairman of Abdulsalam Al Rafi Group.
“We are delighted to have been enabled to work closely in this facility with Emirates NBD and in achieving the successful closure of such a major deal,” said George Abraham, Executive Vice President, Group Head of Corporate Banking, First Gulf Bank.
“The Club Deal offered us the opportunity to combine our strengths and resources to structure and optimal financial solutions to support this valued client of both our institutions and an important initiative. First Gulf Bank remains committed to provide comprehensive solutions to support development activities in the local market.”
No terms for the financing were given in the statement, except to say that the loan was split equally between the two banks. – Reuters & TradeArabia News Service