International legal practice Norton Rose (Middle East) said it had advised Emaar Properties on the Dh3.6 billion ($1 billion) Shariah compliant financing secured over The Dubai Mall.

The facility is to be used primarily for the refinancing of existing facilities at the world’s largest shopping and entertainment destination, said a company statement.

The financing, provided by a club of conventional and Islamic banks, comprised both an Islamic tranche structured on a diminishing musharaka basis and a conventional tranche.

Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered Bank were the mandated lead arrangers.

The Norton Rose team was led by Mohammed Paracha, partner and head of Islamic Finance for the Middle East & Africa.

Matthew Escritt (Of counsel) was responsible for day to day advice on the banking aspects and was assisted by Martin Botik (associate), while partner Nick Clayson led on the real estate aspects of the transaction and was assisted by Hannah Thomas (associate). Allen & Overy advised the mandated lead arrangers.

Paracha said Norton Rose was delighted to act for Emaar again in this important facility. 'The use of a Sherkut-ul-Milk diminishing musharakah arrangement in such a complex financing demonstrates the wide acceptance of Islamic Finance within the financial markets,' he noted.

Escritt said, “This is a very significant deal for the real estate market in the UAE and confirms, in spite of prevailing market conditions, that there is still ample liquidity available for the right borrower with the right asset.”

Norton Rose (Middle East) has over 30 years experience advising on all areas of Islamic finance transactions.-TradeArabia News Service