Dubai developer Meydan Group secures Dh1b financing from ADIB

Developer will use money to part-finance projects that will line up along the Dubai Water Canal and for general corporate expenditure

  
Image used for illustrative purpose. Two workers use their mobile phones in the newly built Meydan Horse racing complex in Dubai

Image used for illustrative purpose. Two workers use their mobile phones in the newly built Meydan Horse racing complex in Dubai

REUTERS/Ahmed Jadallah

Tuesday, Dec 27, 2016

Dubai: The master-developer Meydan Group has secured a Dh1 billion financing from Abu Dhabi Islamic Bank (Adib) that would go to part-finance projects that will line up along the Dubai Water Canal and for general corporate expenditure. There are about 15 to 20 prime plots that the developers of the Canal — Meydan and Meraas — have right on the water-side, extending from the Safa Park all the way through Jumeirah and the sea.

Meydan intends to develop the plots it owns for a soon-to-be-expanded leasing portfolio. These properties will have some of the most coveted sites in Jumeirah, boosted in no part by proximity to the water’s edge. “None of the Canal plots on the Safa Park side of Shaikh Zayed Road have been released — what have been announced are from private developers on the other side of the Rod,” said a top official with Meydan.

“We should have details about how the properties on our plots will shape up in 2017, most likely in the second half.” (Currently, less than 10 per cent of the Meydan revenue stream is made up of its leased portfolio.)

It will also mean starting to realise the real estate development potential created by the Canal after its recent opening. It is already some way towards redrawing the Jumeirah district, which has also seen changes come through from the creation of the City Walk and Boxpark retail clusters as well as the soon-to-open residential blocks within the Citywalk cluster. These are owned by Meraas.

For Meydan, the new Adib-led financing — with Dubai Islamic Bank and Al Hilal Bank as mandated lead arrangers — matures in December 2018. Meydan had earlier this year secured another Dh1 billion financing from Adib, but that was structured as a Sukuk-Ijara facility. That has a tenor of eight years. (Also this year, it secured $476 million for a 10-year term from Qatar National Bank and CBI [Commercial Bank International].) “This facility assists in realising our funding objectives to build strategic partnerships with local and regional financial institutions to continue our growth,” said Saeed Humaid Al Tayer, Chairman and CEO of Meydan Group.

Apart from the Canal and allied projects, Meydan’s development portfolio is quite sizable. It is helming several “districts” of MBR (Mohammad Bin Rashid) City master-development as well as a destination mall within. The key concepts for the mega-mall — which will also decisively raise Meydan’s leasing income — have been finalised and the developer is now awaiting the detailed design. This should be the next big financing Meydan will be tapping lenders for.

There is also an ongoing signature skyscraper project on Shaikh Zayed Road, the 100-storey-plus Entisar Tower.

“Where possible Meydan will seek to create opportunities to partner Islamic financial institutions,” said Meghnad Warrier, Director of Finance. “Right through our agreements with banks, we have secured quite favourable terms.”

Meydan’s building up a substantial portfolio

•Apart from the Dubai Water Canal, in which it is associated with Meraas, Meydan has lots on its plate at MBR (Mohammad Bin Rashid) City, which covers around 47 million square feet. It is helming District Eleven that will also house accommodation for Emirates airline personnel. It features 528 townhouses.

By Manoj Nair Associate Editor

Gulf News 2016. All rights reserved.


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