SKAI secures $201mn financing for Dubai project
Viceroy Dubai Palm Jumeirah to complete in 2016
Dubai-based real estate investment company, SKAI Holdings, has secured $201mn (AED737.6mn) of financing for its $1bn (AED3.75bn) Viceroy Dubai Palm Jumeirah project.
The financing agreement, which further reaffirms SKAI Holdings commitment to the UAE’s hospitality sector, was arranged by the Industrial and Commercial Bank of China (ICBC), China’s largest bank, marking its first project financing deal for a hospitality project in the Middle East.
“It is a pleasure to announce such an important step for the real estate sector and that total construction funds for a project of this calibre have been fully secured at such an early stage of development. This is a practice which is encouraged and supported by RERA and is a clear mark of Dubai’s real estate sector reaching maturity and a reassuring sign to off-plan investors and buyers in the Emirate. We would also like to thank the developer for its exerted efforts to comply fully with real estate regulations,” said Khalid Obaid Al Mutaiwei, senior director of the Real Estate Development Trust Account Department at RERA.
"Since the commencement of our operations in the UAE in 2008, the total assets of ICBC have doubled year on year. ICBC is pleased to and shall continue to provide support for the development of the UAE economy. This is the first time ICBC is able to fully participate and facilitate the financing of a hospitality and residential development project in the region. We believe this opportunity is an ideal step for ICBC to enter into Dubai's growing Real Estate Industry" added Zhou Xiaodong, CEO of ICBC Middle East.
The announcement follows several months after SKAI Holdings said it would form a special purpose vehicle with Viceroy Dubai Palm Jumeirah’s main contractor, China State Construction Engineering Corporation (Middle East) (L.L.C) (CSCECME), following its investment in the project.
“An increasing number of Chinese investors are looking to the Middle East and the UAE in particular as they seek to diversify their assets and investment portfolio. The Emirate's strategic location, its strong infrastructure and growing real estate sector means it is set to become a vital area of growth for Chinese investment,” said Yu Tao, president and CEO of China State Construction Engineering Corporation (Middle East) (L.L.C).
“Securing the final round of funding for the Viceroy Dubai Palm Jumeirah marks another key milestone in the construction of the project and further demonstrates our pledge to complete the project on time and to the highest standards,” said Nabil Akiki, CEO, Real Estate Development of SKAI Holdings.
“I am extremely bullish about Dubai’s hospitality sector, looking ahead the UAE’s successful Expo 2020 bid, together with its growing population and renewed economic outlook will see its tourism industry continue to flourish,” added Kabir Mulchandani, Group CEO of Skai Holdings Limited LLC.
The main structural works of the Viceroy Dubai Palm Jumeirah project are currently underway and ahead of schedule. The luxury residential and hospitality project, which is slated for completion in 2016, will offer its guests 479 spacious rooms and suites and 222 signature Viceroy Residences with breathtaking views of the Arabian Sea.