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•Dual Islamic and conventional facility will fund Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village projects
•Syndicate includes Abu Dhabi Islamic Bank and three of the world's largest banks; Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China
•Construction on Viceroy Dubai Palm Jumeirah six-months ahead of schedule, on track for completion in second half of 2016
Dubai - SKAI, the Dubai-based real estate and hospitalitygroup, has successfully completed a AED1.1bn (US$300m) syndicated finance package to support the construction of its Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village projects.
The international syndicate for the dual Islamic and conventional facility is 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 AED2.2bn (US$585m) in subscriptions, representing an overwhelming interest from some of the world's foremost financial institutions. Thesyndication 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 US$47.6bn 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) (L.L.C) (CSCEC ME), a main contractor and a key investor on both of its projects.
Arif Usmani, Global Head of Wholesale Banking Group, ADIB, said: "We are pleased to have played a leading role in this unique transaction which is testament to our appetite to continue supporting our clients through innovative deal structures that match their financial needs. The transaction also highlights the strengths of the hospitality sector in Dubai and the UAE.
"We remain confident about Dubai's hospitality sector, which is backed by significant fundamentals such as Expo 2020, a growing population and continued investment in the key infrastructure," said Zhang Junguo, Deputy General Manager, ICBC Dubai (DIFC) Branch.
China Statehas completed 75 percent of the Viceroy Dubai Palm Jumeirah and 15 percent of the Viceroy Dubai Jumeirah Village, putting them on track for opening in 2016 and 2017, respectively.
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."
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 AED1.37bn tower will feature 247-hotel rooms and suites as well as 221 one-and-two bedroom hotelapartments and 33 four-bedroomhotel 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 AED4.05bn,will offer guests 477 spacious rooms and suites and 221serviced apartmentswith breath-taking views of the Arabian Sea and Dubai's dramatic skylines.
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About SKAI
SKAI is an integrated and holistic real estate group based in the UAE. Offering a wide range of services across four key verticals - investment, restructuring, development and hospitality - SKAI has a unique approach that is designed to leverage the different cycles of the real estate industry. SKAI differentiates itself through its philosophy of Inspired Perspectives. Based on four core values, SKAI Holdings takes pride in its ambition and remains committed to fostering trust, encouraging entrepreneurship, driving innovation and relying on its intuition.
Real estate investment: SKAI identifies and invests in completed projects at the most opportune time for maximum return.
Real estate restructuring: SKAI has a proven track record in acquiring, evolving and selling properties. The firm has developedand delivered residential projects, Villa Myra and Villa Pera and Cappadociain Dubai's Jumeirah Village Circle. Other completed projects include Bahar 4 in Jumeirah Beach Residence, Dubai.
Real estate development: SKAI is involved in the construction and development of properties across the UAE.
Hospitality: SKAI has a clear mandate to grow its hospitality division across three core areas; hotels, serviced apartments and residences. The firm is currently developing the AED3.67bn ($1bn) Viceroy Dubai Palm Jumeirah. SKAI Residency features 117 one and two bedroom serviced apartments for short and long-term leases in The Greens, Dubai.
For media information, please contact:
Claire Ferris-Lay
ASDA'A Burson-Marsteller
Tel: +971 4 450 7600
Email: claire.ferrislay@bm.com
© Press Release 2015
