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|13 April, 2019

Dubai's Damac wins $229mln funding for London luxury tower

Damac Tower at Nine Elms will be the first in Europe to be designed in partnership with famous Italian fashion house, Versace Home

Hussain Sajwani, founder and chairman of Dubai's DAMAC Properties poses for the camera during an interview with Reuters at his office in Dubai, August 30, 2017.

Hussain Sajwani, founder and chairman of Dubai's DAMAC Properties poses for the camera during an interview with Reuters at his office in Dubai, August 30, 2017.

REUTERS/Saeed Azhar
Dubai-based luxury developer Damac said its international unit has secured a development financing package of £175 million ($229 million) for its landmark project in London.
 
Damac Tower at Nine Elms will be the first in Europe to be designed in partnership with famous Italian fashion house, Versace Home.
 
The €645-million ($729 million) tower, designed by architect Kohn Pedersen Fox Associates, is scheduled for completion in 2020.
 
The 50-storey building, 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 studios, one-, two- and three-bedroom apartments, complemented by premium finishings, and feature special ‘winter gardens’ that offer panoramic views of the city.
 
The funding from three major lenders including Barclays Bank, which acted as the UK lead bank, Burgan Bank, and Emirates NBD, completes the finance deal for the luxury London tower, Damac’s premiere development outside of the Middle East.
The partnership marks a major vote of confidence in the United Kingdom, at a time of heightened political and economic uncertainty.
 
The package is matched by significant equity commitment from the leading developer, it added.
 
"In a vote of confidence in the UK and Damac’s track record, we have secured significant support to complete our distinctive residential development in London,” remarked its Chairman Hussain Sajwani.
 
"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," stated Sajwani.
 
This deal confims the United Kingdom’s attractiveness as a long-term destination for foreign direct investment, said the top official.
 
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, he added.
 
Dennis Watson, the head of real estate, Barclays Corporate Banking, said: "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."
 
Mohammad Al Mael, the head of corporate banking and assistant general manager at Burgan Bank said: "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."
 
Raashed Amin, the chief executive of Emirates NBD Bank, London Branch, said: "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."
 
Damac Tower at Nine Elms 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.
 
In addition to residential units, Damac Tower will comprise four storeys of office space and will contain a sky bridge between the south building and north tower, which is topped by an extensive roof garden at level 24, said the developer.
 
Further residential amenities include a children’s play area, expansive indoor swimming pool, Jacuzzi, gymnasium, residents lounge, hospitality services as well as 9,924 square feet of communal gardens, it added.-TradeArabia News Service

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