SKAI, a Dubai-based real estate and hospitality group, has secured a funding of Dh1.1 billion ($300 million) from major banks across the world for the construction of its Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village projects.

The syndicated finance package is a dual Islamic and conventional facility backed by seven financial institutions, including Abu Dhabi Islamic Bank, and three of the world’s largest banks; Industrial and Commercial Bank of China, the world’s largest lender by assets and market capitalisation; Agricultural Bank of China; and Bank of China. China Minsheng Banking Corp, China’s largest privately-owned bank; Invest Bank and Arab African International Bank also backed the transaction.

“This transaction received Dh2.2 billion ($585 million) in subscriptions, representing an overwhelming interest from some of the world’s foremost financial institutions. The syndication also demonstrates a firm commitment to Dubai’s growing hospitality sector. Construction work on our flagship project, Viceroy Dubai Palm Jumeirah, is progressing well and is currently six-months ahead of schedule, setting it on track for completion in the second half of 2016,” said Kabir Mulchandani, Group CEO of SKAI.

The syndication marks another example of China’s growing interest in the UAE. Chinese and UAE trade reached a record $47.6 billion in 2014 and the Gulf state is home to more than 4,000 Chinese companies, including four of China’s largest banks. SKAI has a long standing relationship with several state Chinese institutions, including China State Construction Engineering Corporation (Middle East) (CSCEC ME), a main contractor and a key investor on both of its projects.

China State has completed 75 per cent of the Viceroy Dubai Palm Jumeirah and 15 per cent of the Viceroy Dubai Jumeirah Village, putting them on track for opening in 2016 and 2017, respectively.

In March, SKAI said it would upgrade its upper upscale property in Dubai’s Jumeirah Village Circle to a five-star luxury property and rebrand it Viceroy Dubai Jumeirah Village following the signing of Viceroy Hotel Group as its hotel operator.

The Dh1.37 billion ($372.8 million) tower will feature 247-hotel rooms and suites as well as 221 one-and-two bedroom hotel apartments and 33 four-bedroom hotel apartments all with private pools. The tower is strategically located in close proximity to three of Dubai’s arterial roads (Al Khail Road, Sheikh Mohammad Bin Zayed Road (formerly Emirates Road) and Hessa Street) and a short drive from Dubai’s new Al Maktoum International Airport and Expo 2020 site.

Viceroy Dubai Palm Jumeirah, SKAI’s flagship property with a value of Dh4.05 billion ($1.1 billion), will offer guests 477 spacious rooms and suites and 221 serviced apartments with breath-taking views of the Arabian Sea and Dubai’s dramatic skylines.

Yu Tao, President and CEO of CSCEC ME, said: “These projects are landmark projects for the China State team in the Middle East and reaffirm our commitment to Dubai’s growing tourism and hospitality sector. With the structural work on the Viceroy Dubai Palm Jumeirah nearly two thirds complete and work well underway on the Viceroy Dubai Jumeirah Village, work is progressing on schedule.” – TradeArabia News Service