Mubadala Real Estate & Infrastructure, a business unit of Mubadala Development Company, and Gulf Related, a regional real estate development company focused on high-end retail, residential and mixed-use real estate developments in the Middle East, announce Dh248 million refinancing of The Galleria debt with the National Bank of Abu Dhabi, following the successful opening and 100 per cent leasing of the retail mall in August.
The Dh248 m refinancing facility will help The Galleria to further strengthen its capital structure, reduce its borrowing cost and generate over 50 per cent in annual interest expense savings.
The loan refinancing of The Galleria - their signature joint project on Al Maryah Island - was signed following the successful opening and full leasing of The Galleria mall in August this year.
The debt facility, which represents 60 per cent of the total project cost of The Galleria over an eight-year term, was finalised at a signing ceremony between Mubadala, Gulf Related and NBAD.
Ali Eid AlMheiri, Executive Director of MREI said: "We are proud to be working with NBAD on the refinancing of The Galleria. This is the second partnership with NBAD on Al Maryah Island and we look forward to growing our partnership with them.”
Alex Thursby, Group CEO of NBAD said: "NBAD is proud to be working with Mubadala and Gulf Related on this signature project. The recent opening of The Galleria and strong traction to date, as evidenced by the 100 per cent leasing rate achieved, is a strong testimony to the strength and strong cash flows of the project and the appeal of Al Maryah Island as the premier retail and business destination in Abu Dhabi.”
Dr Karim El Solh, Chief Executive Officer of Gulf Capital and co-Managing Partner of Gulf Related, said: "This innovative refinancing facility is an important part of our continued financial and operational enhancement of our Galleria investment and will allow us to optimise the capital structure of the project, reduce borrowing cost and enhance shareholder value.”