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Limitless eyeing land sale in $1.2bn debt deal

Reports claim sale of land near Jebel Ali will help repay loan

NEWS, Business, Jebel Ali, Limitless

Developer Limitless has reportedly proposed selling land near Dubai’s main port to help repay a $1.2bn loan.

The move comes as the company seeks a second debt restructuring deal with creditors, Bloomberg reported, citing sources close to the matter.

The Dubai-government controlled property developer has proposed to pay lenders in three installments in 2016, 2017 and 2018 instead of the three years through 2016, the sources said, adding that rental income from a commercial property near the port in Dubai’s Jebel Ali area will also support payments.

The company is one of a number of state-owned entities in the Emirate who were forced into restructuring debt at the turn of the decade as they couldn't manage obligations taken on during a boom period once the global financial crisis and a local real estate crash hit.

A former property arm of Dubai World, Limitless restructured the sharia-compliant debt facility in October 2012 after several maturity extensions by a syndicate of lenders.

Bloomberg reported that Emirates NBD, National Bank of Abu Dhabi, Dubai Islamic Bank, Mashreqbank, and Arab National Bank are among creditors that will form a coordination committee to negotiate the deal on behalf of 23 creditors.

It added that the value of the company’s land bank in Jebel Ali is sufficient to repay creditors and proceeds from sales finalised ahead of scheduled payments will be used to settle debt.

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