Work on Deira Island moving forward, says Nakheel chairman

Unec, the main contractor for the Dh4.2 billion Deira Mall project on Deira Island, has already began its preparations on the site. (Courtesy Nakheel)
Updated 13 September 2017
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Work on Deira Island moving forward, says Nakheel chairman

DUBAI: State-owned developer Nakheel has started work on the first two of up to five resort hotels being planned on its Deira Island manmade island project, according to chairman Ali Rashid Lootah.
“We are starting ourselves,” Lootah said, on the resort sites being developed alongside Spain’s RIU hotels and with Thailand’s Centara, following the signing of deals with the companies.
“One has already started the construction with the soil investigation and piling — RIU. The other one, I think we should go to tender for the first package for the soil improvement tender very soon.”
Deira Island is a scaled down version of the Palm Deira project announced during the height of the Dubai property boom in 2007.
The operating partners for the three remaining hospitality projects have yet to be finalized. “The other plots we have allocated for future partnerships. We are talking to people, but at least we have two serious partners,” he said.
Elsewhere on Deira Island, Unec, — the main contractor for the Dh4.2 billion Deira Mall project — has already began its preparations on the site after it was awarded the deal to build the 10.3-million square foot center in April this year.
“The soil improvement package is about to be done and then the contractor will mobilize,” he said. “I think before the end of the year, the contractor will start.”
Lootah also expects an award to be made for the 22 towers containing 2,900 apartments it is planning to build either side of the mall as part of the renamed Deira Central (formerly Deira Boulevard) project. This includes 16 residential, two hotel and four serviced apartment towers — all of which are being retained by the developer for its recurring income portfolio. It will also sell 28 more plots around the site to third-party developers.


Dubai Aerospace signs $480 million loan deal

Updated 21 May 2018
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Dubai Aerospace signs $480 million loan deal

DUBAI: Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, said on Monday it had signed a four-year loan deal for $480 million.
DAE, a government-controlled company set up in 2006, has become one of the world’s largest aircraft lessors after acquiring Dublin-based AWAS last year.
The acquisition tripled the Dubai aircraft leasing and maintenance company’s portfolio to about 400 aircraft worth more than $14 billion.
The $480 million loan, which includes both conventional and Islamic finance tranches, has a so-called “accordion facility” allowing it to be increased to up to $800 million.
With the loan, the company’s unsecured revolving credit facilities increase to between $1.125 billion and $1.445 billion, depending on final size of the latest deal, Firoz Tararpore, DAE’s chief executive, said in a statement.
“On a pro forma basis as of December 2017, if this facility is fully drawn and if the proceeds are used to pay down secured indebtedness, DAE’s percentage of unsecured debt would increase from 26 percent to a range of 31-34 percent.”
Last year, the company issued $2.3 billion in senior bonds split across three tranches last year, partly to finance the AWAS acquisition.
Tarapore said in an interview last week that DAE was in talks to buy a near-record total of 400 jetliners from Airbus and Boeing in an order that could be worth more than $40 billion at list prices.
Al Ahli Bank of Kuwait coordinated the latest loan deal and was also the lead arranger and joint bookrunner together with First Abu Dhabi Bank, while Noor Bank joined the deal as lead arranger.