Search follows award of $218m construction contract in early January
Abu Dhabi’s Mubadala Development Company is looking to appoint a financial adviser for the development of the Rosewood hotel on Sowwah Island.
A request for proposals was sent to several of Mubadala’s relationship banks in early January.
Sources close to the process say the request gives few details about how much needs to be raised, or the potential structure of the deal.
Raising project finance for a hotel is also uncommon and banks will have to determine what level of risk potential lenders will be willing to take on. For example, bankers say that lenders are unlikely to be keen to take on any risk associated with the levels of hotel occupancy.
Banks will be asked to pitch to Mubadala in February for the advisory role, and an award could happen later that month, according to one banker who has received the documentation.
Earlier this month Mubadala awarded the AED800m ($218m) construction contract for the Rosewood hotel to the local/Lebanese Arabian Construction Company (MEED 04:01:10).
The project covers the construction of a five-star hotel with 189 rooms and 139 serviced apartments, a retail area, basement parking and other facilities including a swimming pool, health club and spa. The total built-up area is about 100,000 square metres.
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