SKAI Holdings, a Dubai-based real estate investment company, today announced it has secured AED737.6m (US$201m) of financing for its AED3.75bn Viceroy Dubai Palm Jumeirah, ensuring that the project is fully funded.
The financing agreement, which further reaffirms SKAI Holdings commitment to the U.A.E.'s hospitality sector, was arranged by the Industrial and Commercial Bank of China (ICBC), China's largest bank, marking its first project financing deal for a hospitality project in the Middle East.
"It is a pleasure to announce such an important step for the real estate sector and that total construction funds for a project of this calibre have been fully secured at such an early stage of development. This is a practice which is encouraged and supported by Real Estate Regulatory Agency (RERA) and is a clear mark of Dubai's real estate sector reaching maturity and a reassuring sign to off-plan investors and buyers in the Emirate. We would also like to thank the developer for its exerted efforts to comply fully with real estate regulations," said Khalid Obaid Al Mutaiwei, Senior Director of the Real Estate Development Trust Account Department at RERA.
Today's announcement comes several months after SKAI Holdings said it would form a special purpose vehicle with Viceroy Dubai Palm Jumeirah's main contractor, China State Construction Engineering Corporation Middle East (CSCECME), following its investment in the project.
"An increasing number of Chinese investors are looking to the Middle East and the U.A.E. in particular as they seek to diversify their assets and investment portfolio. The Emirates' strategic location, its strong infrastructure and growing real estate sector means it is set to become a vital area of growth for Chinese investment," said Yu Tao, President and CEO of China State Construction Engineering Corporation, Middle East.
"Securing the final round of funding for the Viceroy marks another key milestone in the construction of the project and further demonstrates our pledge to complete the project on time and to the highest standards," said Nabil Akiki, CEO, Real Estate Development of SKAI Holdings.
"I am extremely bullish about Dubai's hospitality sector; looking ahead the U.A.E.'s successful Expo 2020 bid, together with its growing population and renewed economic outlook will see its tourism industry continue to flourish," added Kabir Mulchandani, Group CEO of SKAI Holdings.
The main structural works of the project are currently underway and ahead of schedule.