Dubai's ICD Said to Seek $1.1 Billion for Atlantis, Office Towerby and
Co. seeking $700 million loan to build a new Atlantis resort
ICD-Brookfield JV seeking 1.6 billion dirhams for DIFC tower
Investment Corporation of Dubai, the emirate’s main state-owned holding company, is talking to banks to raise about $1.1 billion in loans to fund the construction of a resort and an office tower, according to three people with knowledge of the plan.
ICD, as the company is known, is seeking a $700 million, 10-year loan to build a new Atlantis resort on Dubai’s man-made Palm Jumeirah island, according to two people with knowledge of the deal, who asked not to be identified because the information is not yet public. A joint venture of ICD and Brookfield Property Partners LP is also seeking a seven-year 1.6 billion dirham ($436 million) facility to fund the construction of the tower in the Dubai International Financial Centre, three people said.
Dubai, the Gulf’s tourist and business hub, is pushing ahead with construction projects even as economic growth in the oil-producing region slows after the price of crude more than halved. The emirate is building hotels as it aims to attract 20 million tourists annually by 2020, while office buildings owned by single entities are in short supply and are still in demand for companies looking to consolidate staff from various offices within the city.
A spokesman for ICD couldn’t immediately be reached for comment, while ICD-Brookfield declined to comment in an e-mail.
ICD and Kerzner International Holdings Ltd., a developer and operator of destination resorts and luxury hotels, plan to spend $1.4 billion to build The Royal Atlantis Resort and Residences. The development will comprise nearly 800 guest rooms and 250 luxury residences. ICD acquired Atlantis, The Palm from Dubai World in December 2013.
ICD-Brookfield, a joint venture of the two companies, plans to start building the first commercial tower to be developed in Dubai’s financial district since the global credit crisis seven years ago. The New York-based company and ICD will split the $1 billion cost of the 53-story project.
Emirates NBD PJSC, Dubai’s biggest lender, Dubai Islamic Bank PJSC and Abu Dhabi Commercial Bank PJSC are among lenders providing the Atlantis loan, according to the people. The Atlantis loan has a seven year repayment after a three year holiday. Half the loan will be amortised over seven years while the remainder will be paid at maturity, one of the people said. It has dirham and dollar options and offers to pay 295 bps, or 2.95 percentage points, over the benchmark rate, the person said.
Spokesmen for Emirates NBD and Abu Dhabi Commercial Bank declined to comment while Dubai Islamic Bank didn’t immediately respond to an e-mail seeking comment.