Wednesday, Dec 19, 2012
DUBAI (Zawya Dow Jones)--Dubai-based Emaar Properties (EMAAR.DFM) said it has signed a $500 million financing facility with a consortium of banks to fund the development of a mixed-use development in Istanbul.
The loan facility with Standard Chartered Bank, Emirates NBD Capital Limited and HSBC Bank PLC will be repaid in seven years time, Emaar said in an emailed statement on Wednesday.
"The new financing facility highlights Emaar's ability to raise long-term finance and reiterates the strong market confidence in our development competencies and our ability to successfully deliver projects," said Emaar's Chairman Mohamed Alabbar. He added that Turkey is now one of Emaar's key markets, a country where it has successfully handed over homes in the first phase of its integrated community there called Tuscan Valley.
The new project named Emaar Square spans 73,000 square metres comprising over 1,000 luxury homes, a 180 room five star hotel, a wide range of leisure facilities, offices, as well as a shopping mall that Emaar expects will be the largest in Turkey.
In October, Emaar posted a 5% drop in third-quarter net profit as revenue slowed. Mr. Alabbar said at the time that the company would "continue to explore new growth opportunities that will contribute to sustained value creation for the company and its stakeholders."
Emaar shares closed trading Wednesday 0.5% higher at AED3.70.
Write to Tim Falconer at tim.falconer@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
19-12-12 1233GMT
