DAMAC wins $229.4m funding for UK project - GulfToday

DAMAC wins $229.4 million funding for UK project

DAMAC-Tower750

DAMAC Tower at Nine Elms.

In a clear demonstration of the United Kingdom’s attractiveness as a long-term destination for foreign direct investment, DAMAC International has secured a development financing package of $229.4 million (GBP175 million) for London’s landmark project, DAMAC Tower at Nine Elms. The partnership marks a major vote of confidence in the United Kingdom, at a time of heightened political and economic uncertainty.

The securing of the £175 million across three major lenders including Barclays Bank, which acted as the UK lead bank, Burgan Bank, and Emirates NBD, completes the financing of the luxury tower, DAMAC’s premiere development outside of the Middle East. The package is matched by significant equity commitment from the leading developer.

“In a vote of confidence in the United Kingdom and DAMAC’s track record, we have secured significant support to complete our distinctive residential development in London,” said Hussain Sajwani, Chairman of DAMAC. “DAMAC Tower continues to garner strong interest from customers seeking premium branded real estate in one of the most desirable addresses in the world, and its success has encouraged us to seek the next investment opportunity in London, which we are currently engaged in detailed discussion to secure.”  

The successful closure of the deal is testament not only to DAMAC’s success in achieving private residential pre-sales of 55% in what have been challenging market conditions, but also the confidence the banks have in the inherent ability of DAMAC to deliver strong returns in new geographical locations and target markets.

”Barclays has a strong and longstanding relationship with the UK real estate sector and so our support in this landmark project was an obvious fit and underlines our ongoing commitment to residential development of all sizes in our home market.” Dennis Watson, Head of Real Estate, Barclays Corporate Banking.

“Once again, we affirm our confidence in DAMAC Group as market leaders in delivery of high-end residential development, and the continued fundamental attractiveness of the UK as a whole.” Mohammad Al-Mael, Head of Corporate Banking, Assistant General Manager, Burgan Bank.

“Having become known for offering differentiated financial products, it was natural for us to partner up with DAMAC Group on this distinctive development, with a significant development financing package in the UK,” said Raashed Amin, CEO, Emirates NBD Bank, London Branch.

DAMAC Tower at Nine Elms will be the first in Europe to be designed in partnership with famous Italian fashion house, Versace Home. The 50-storey tower, located in one of London’s most prestigious residential addresses and delivered by Nine Elms Property Limited, a wholly owned subsidiary of DAMAC International, will comprise of studios, one, two and three bedroom apartments, complemented by premium finishings, and feature special ‘winter gardens’ that offer panoramic views of the city.

Hussain Sajwani has said recently that the Dubai-based developer is scouting for additional plots of land in the Kingdom of Saudi Arabia, both in established cities and in emerging giga-projects like Neom.

According to a media report, Sajwani said that Damac is eying Saudi Arabia for potential expansion for its high-end residential projects, keeping in mind the slowing property market in Dubai. The developer already has one property in Jeddah and a twin-tower project in Riyadh.

 “In the Middle East, Saudi Arabia is the biggest economy … They have some very ambitious projects, like the Neom city and other large projects. We’re watching those and studying them very carefully.”

Nine Elms Property is a wholly-owned subsidiary of DAMAC International, part of the DAMAC Group.

The development will provide 450 new homes and is sited within Zone 1 at Nine Elms on the South Bank, part of a wider multi-billion pounds regeneration scheme that includes the redevelopment of Battersea Power Station as well as the location for the new US Embassy.

DAMAC Properties has been at the forefront of the Middle East’s luxury real estate market since 2002 – bringing luxury living experiences to residents from all over the world. Making its mark at the highest end of stylish living, DAMAC Properties has cemented its place as the leading luxury developer in the region, offering iconic design and the utmost quality. The Company’s footprint now extends across the Middle East with projects in the UAE, Saudi Arabia, Qatar, Jordan, Lebanon and Oman, as well as the United Kingdom. As of 31st December 2018, DAMAC Properties has delivered over 24,330 homes. The Company has a development portfolio of over 40,000 units at various stages of progress and planning, comprising more than 10,000 hotel rooms, serviced apartments and hotel villas, which will be managed by its hospitality arm, DAMAC Hotels & Resorts.

Agencies