Saudi developer Jabal Omar Development Company has signed a SR4bn ($1bn) loan facility to refinance the construction costs of the first phase of its Mecca real estate development.
National Commercial Bank (NCB) has provided the funding, which refinances a previous facility signed with six Saudi Arabian banks in September 2012. The new facility provides far better financing terms with an extended repayment period of 15 years rather than 8 years.
This includes a grace period of three years with repayments due to start on September 2017.
The loan is due to be repaid from the anticipated returns of five hotels, which form part of the first phase of the project, in addition to commercial rental income and the sale of some residential units.
The Jabal Omar Development will be built across 57 acres and include 37 towers, including hospitality, residential, retail, commercial and religious facilities in Mecca.
US-based Hill International has been the project manager on the development since 2010.
In January 2014, UAE-based Ruwad Construction Company has been awarded the estimated $800m contract to build the fourth phase of the Jabal Omar Development in Mecca, Saudi Arabia.