Mubadala, Gulf Related refinance $67m debt
Abu Dhabi, September 24, 2013
Mubadala Real Estate and Infrastructure (MREI), a business unit of Mubadala Development Company, and Gulf Related, a regional real estate development company, have refinanced the debt of their joint mall project with the National Bank of Abu Dhabi (NBAD).
The Dh248 million ($67.4 million) refinancing facility for the Galleria on Al Maryah Island will help to further strengthen its capital structure, reduce its borrowing cost and generate over 50 per cent in annual interest expense savings, said a statement.
The debt facility represents 60 per cent of the total project cost of the Galleria over an eight-year term, it said.
Ali Eid Al Mheiri, executive director of MREI, said: "Our successful opening and full leasing of the project has made it possible for our joint-venture with Gulf Related to refinance the project's existing debt at attractive terms.”
Dr Karim El Solh, CEO of Gulf Capital and co-managing partner of Gulf Related, said: "This innovative refinancing facility is an important part of our continued financial and operational enhancement of our Galleria investment and will allow us to optimise the capital structure of the project, reduce borrowing cost and enhance shareholder value.” - TradeArabia News Service