• Dubai’s Skai Holdings secures AED1.1bn ($300m) in conventional and Islamic financing
  • The syndicated finance will fund the construction of the Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village
  • Seven banks participated in the syndication, including four Chinese banks

Dubai-based real estate and hotels group Skai Holdings has secured an AED1.1bn ($300m) in syndicated finance to carry out its Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village projects.

Seven local and international banks participated in the financing, which is dual Islamic and conventional.

They are Abu Dhabi Islamic Bank, the world’s largest lender the Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China, Bank of China, China Minsheng Banking Corp, Sharjah’s Invest Bank and Egypt’s Arab African International Bank.

“This transaction received AED2.2bn in subscriptions, representing an overwhelming interest from some of the world’s foremost financial institutions,” said Kabir Mulchandani, group CEO of Skai in a statement. “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.”

ICBC also provided AED737.6m in project financing in January 2014 to support the construction of the Viceroy hotel.

It was the first time ICBC provided a project finance facility for a hotel project in the Middle East.

Skai formed a special purpose vehicle with the main contractor on the hotel project, China State Construction Engineering Corporation (CSCEC).

The property firm awarded CSCEC the estimated AED1bn main contract on the hotel in 2013.

The AED1.37bn 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.

Work on the hotel is 75 per cent complete, while the villas are 15 per cent complete. Construction should finish on schedule in 2016 and 2017 respectively.