Banks raise Dh1.1bn for Skai's 2 Dubai projects

Skai, the Dubai-based real estate and hospitality group, has successfully completed a Dh1.1 billion ($300 million) syndicated finance package to support the construction of its Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village projects.

The international syndicate for the dual Islamic and conventional facility is backed by seven financial institutions, including Abu Dhabi Islamic Bank, and three of the world’s largest banks; Industrial and Commercial Bank of China, the world’s largest lender by assets and market capitalisation; Agricultural Bank of China; and Bank of China. China Minsheng Banking Corp, China’s largest privately-owned bank; Invest Bank and Arab African International Bank also backed the transaction.

“This transaction received Dh2.2bn ($585m) in subscriptions, representing an overwhelming interest from some of the world’s foremost financial institutions. The syndication also demonstrates a firm commitment to Dubai’s growing hospitality sector. Construction work on our flagship project, Viceroy Dubai Palm Jumeirah, is progressing well and is currently six-months ahead of schedule, setting it on track for completion in the second half of 2016,” said Kabir Mulchandani, Group CEO of Skai.

The syndication marks another example of China’s growing interest in the UAE.

Chinese and UAE trade reached a record $47.6bn in 2014 and the Gulf state is home to more than 4,000 Chinese companies, including four of China’s largest banks. Skai has a long standing relationship with several state Chinese institutions, including China State Construction Engineering Corporation (Middle East), a main contractor and a key investor on both of its projects.

 “We remain confident about Dubai’s hospitality sector, which is backed by significant fundamentals such as Expo 2020, a growing population and continued investment in the key infrastructure,” said Zhang Junguo, Deputy General Manager, ICBC Dubai (DIFC) Branch.

China State has completed 75 percent of the Viceroy Dubai Palm Jumeirah and 15 percent of the Viceroy Dubai Jumeirah Village, putting them on track for opening in 2016 and 2017, respectively.

Viceroy Dubai Palm Jumeirah, Skai’s flagship property with a value of Dh4.05bn, will offer guests 477 spacious rooms and suites and 221 serviced apartments with breath-taking views of the Arabian Sea and Dubai’s dramatic skylines.

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