DXB Entertainments gets $67mln subordinated loan from Meraas

New loan facility to help fund operational expenses and debt repayments.

Dubai Parks and Resorts.

Dubai Parks and Resorts.

Dubai Parks and Resorts/Handout via Thomson Reuters Zawya
DXB Entertainments (DXBE) PJSC, the owner of Dubai Parks and Resorts, on Wednesday said it will receive a subordinated loan of 245 million UAE dirhams ($66.76 million) from Meraas, its majority shareholder, to fund its operational expenses and debt repayments.

In a notice posted on the Dubai Financial Market, the company said the new loan will take the form of an interest-bearing, unsecured subordinated shareholder loan with no fixed maturity.

The statement also said the company is currently reviewing its ongoing financing requirements.

Mohamed Almulla, chief executive officer, DXB Entertainments, said, in the statement: “This loan will enable the business to execute on its strategy which will generate value for its shareholders over the long term.”

Last month, Zawya reported that DXB Entertainments registered a loss of 578 million dirhams for the first half of 2017 against revenues of 279 million dirhams.

In the same month, the company also re-organised its business structure into three operating divisions - theme parks, family entertainment centres, and retail and hospitality. 

The 10.5 billion dirham first phase of Dubai Parks and Resorts includes motiongate Dubai, Bollywood Parks Dubai, Legoland Dubai and Legoland Water Parks. At the end of June, the entire financing facility for the first phase had been drawn down, the company in its August press statement.

The 2.7 billion dirham second phase includes Six Flags Dubai, scheduled to open in late 2019.

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© Zawya 2017

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