Ferrari Theme Park Developer Looking to Extend Debt Maturities

  • Abu Dhabi's Aldar's wants to keep current debt level, CFO says
  • Company to more than double spending on projects this year

Aldar Properties PJSC, Abu Dhabi’s largest developer and the builder of a Ferrari theme park, is considering extending maturities on parts of its 6 billion dirhams ($1.6 billion) of debt.

The debt, which fell from 9.1 billion dirhams a year ago, includes loans due from 2016 to 2019, Chief Financial Officer Greg Fewer told reporters on a conference call Monday. The rest is a $750 million Islamic bond, or Sukuk, due in 2018.

“We are about half in the bond market, half in the debt market right now in terms of our gross debt and we like that proportion,” the CFO said. “We would like to extend the overall debt duration for the whole portfolio,” he said. “We are monitoring both bank and bond markets for opportunities.”

Companies across the Middle East have been seeking to refinance debt and preserve liquidity amid expectations that interest rates will climb. Aldar, which builds homes, offices and infrastructure across Abu Dhabi, is planning to spend 2.5 billion dirhams this year completing projects, up from 1.1 billion dirhams spent in 2015, he said.

Property sales in Abu Dhabi, the largest of the United Arab Emirates’ seven sheikhdoms, have seen a “slight slowdown” in the past two months. Rents across the company’s residential portfolio climbed around 3 percent, said Talal Al Dhiyebi, Aldar’s chief development office. Recurring income is set to climb to 2.2 billion dirhams by 2020 from 1.5 billion dirhams.

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