DAMAC International has secured a development financing package of £175m for London’s landmark project, DAMAC Tower at Nine Elms.
The partnership marks a major vote of confidence in the United Kingdom, at a time of heightened political and economic uncertainty.
The securing of the £175m across three major lenders including Barclays Bank, which acted as the UK lead bank, Burgan Bank, and Emirates NBD, completes the financing of the luxury tower, DAMAC’s premiere development outside of the Middle East. The package is matched by significant equity commitment from the leading developer.
“In a vote of confidence in the UK and DAMAC’s track record, we have secured significant support to complete our distinctive residential development in London,” said Hussain Sajwani, chairman of DAMAC. “DAMAC Tower continues to garner strong interest from customers seeking premium branded real estate in one of the most desirable addresses in the world, and its success has encouraged us to seek the next investment opportunity in London, which we are currently engaged in detailed discussion to secure.”
The successful closure of the deal is testament not only to DAMAC’s success in achieving private residential pre-sales of c.55% in what have been challenging market conditions, but also the confidence the banks have in the inherent ability of DAMAC to deliver strong returns in new geographical locations and target markets.
”Barclays has a strong and longstanding relationship with the UK real estate sector and so our support in this landmark project was an obvious fit and underlines our ongoing commitment to residential development of all sizes in our home market.” Dennis Watson, Head of Real Estate, Barclays Corporate Banking.
“Once again, we affirm our confidence in DAMAC Group as market leaders in delivery of high-end residential development, and the continued fundamental attractiveness of the UK as a whole.” Mohammad Al-Mael, Head of Corporate Banking, Assistant General Manager, Burgan Bank.