Two local banks have extended loans to finance real estate development projects in Dubai.
The first, a AED 500 million ($136.2 million), nine-and-a-half-year package, is for the Bur Juman expansion project (MEED 20:7:01). National Bank of Dubaiand Emirates Bank International (EBI) have underwritten AED 200 million ($54.5 million) each and MashreqBankhas taken AED 100 million ($27.2 million). The transaction is understood to be priced at about 110-115 basis points over the Dubai interbank offered rate (Dibor). Dubai-based Executive Consultants have acted as financial adviser to the client, Bur Juman Centre.
The Bur Juman expansion will include an additional 450,000 square feet of retail space, a nine-screen cinema, 300,000 square feet of office space and more than 150 apartments (Construction, MEED Special Report, 27:10:00, pages 42-43).
The second transaction, which was signed on 17 November, is a AED 400 million ($109 million) debt package for the part-financing of the Al-Ghurair City expansion project. EBI and MashreqBank are the mandated lead arrangers and Abu Dhabi Commercial Bank and United Arab Bankparticipated in the syndication of the eight-and-a-half-year facility. The client is the Dubai-based Al-Ghurair Group.
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