UAE-based Arada said it has secured a syndicated loan of Dh1 billion ($272 million) from two major local banks that will help finance the development of Sharjah’s largest mixed-use megaproject, Aljada.

The Islamic facility was arranged with Abu Dhabi Commercial Bank (ADCB) and Dubai Islamic Bank as joint mandated lead arrangers and bookrunners.

Aljada, a master-planned destination with a sales value of Dh24 billion that is set to transform the future of Sharjah, was unveiled by HH Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, during an exclusive ceremony in early September.

Since that date, and helped by Arada’s first appearance at the Cityscape Global real estate showpiece, the 24 million sq ft project has become Sharjah’s fastest-selling residential community.

On the finance deal, Arada Chairman Sheikh Sultan bin Ahmed Al Qasimi said: "We are pleased to have secured this funding facility, which is a critical milestone on our journey to deliver this fantastic project."

The financing agreement caps a busy few months for Aljada and its developer.

In November, Arada broke a record for the number of units sold by a developer in Sharjah in a single day, after all 115 homes in Areej 5, an apartment block in Aljada’s Phase 1, were snapped up by buyers on the day they were released.

That followed the announcement of a partnership with Sharjah Electricity and Water Authority (SEWA), which will power the mega development, and the October launch of the Anber Community, a collection of 84 exceptionally designed villas and townhouses ideally located near the heart of Aljada.

Delivered in phases starting in 2019, construction on Aljada will begin in the first quarter of next year and the entire project is expected to be completed by 2025.

Dubai Islamic Bank CEO Dr Adnan Chilwan said: "We are delighted to offer support to the development of Aljada, an impressive initiative that is important to the future of Sharjah."

"This arrangement once again highlights DIB’s strong positioning within the banking sector across all seven emirates and our commitment to the advancement of and development of the country as a whole," he added.

Saoud Al Jassem, the head of government clients division at Abu Dhabi Commercial Bank, said: “We are very pleased to be collaborating with Arada over one of the UAE’s landmark megaprojects."

"Our team quickly recognised the value of this development and has worked hard to deliver an extremely competitive financing transaction for our client," he added.-TradeArabia News Service