Dubai property firm Meraas seeks up to Dh14.7bn loan

Meraas Holding, a property firm that is developing some of Dubai's most ambitious real estate projects, is in talks with banks to raise up to $4 billion (Dh14.7 billion), sources aware of the matter said on Monday.

Meraas has launched a number of projects in recent months, including a complex that will house five theme parks, including the first outside North Americaby Six Flags Entertainment Corp and an island featuring a giant Ferris wheel.

"Meraas is looking for funds to build these mega-projects. Several banks were approached but they have not secured anything yet," said an industry source with knowledge of the matter, who wished to remain anonymous as the discussions were private.

Meraas declined to comment.

A banking source aware of the talks said that Meraas was looking to 'front-load' its debt plans so that it raised as much cash before construction began on the projects.

Meraas has already completed a number of retail developments including a commercial scheme in the up-market Jumeirah area.

Dubai has been able to attract investors back to its property market because of its advanced infrastructure and safe-haven status in Middle East.

House prices in Dubai have risen sharply this year. They rose 27.7 percent in January-March, the fastest year-on-year rise of any of the world's major markets, according to property company Knight Frank. Rents rose about 30 percent on average in the same period.