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Dubai Holding refinances AED 30 bn for Nakheel + Meydan debt: Dubai Holding, the newly merged entity bringing together Nakheel and Meydan under the purview of Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, is set to use a AED 30 bn (USD 8.2 bn) loan to refinance the debts of the two developers, Bloomberg reports, citing people familiar with the matter.
The details: The loan will be used to replace the facilities of the two state-backed developers, helping Dubai Holding capitalize on Dubai’s current real estate boom. The transaction also helped secure more favorable terms for both companies’ debts, according to the business information service’s source.
Refresher: Nakheel and Meydan merged into one entity held by Dubai Holding in March, with Emirates Group CEO Sheikh Ahmed bin Saeed Al Maktoum at the helm.
A possible listing in the coming years? The recent move by Dubai Holding’s CEO Amit Kaushal to merge and refinance the two entities could signal a potential listing of one of its subsidiaries “over the next few years,” according to one of the sources. Kaushal has also been focused on reducing costs at Nakheel and Meydan while streamlining their operations.
Dubai Holding is a real estate giant: The Nakheel-Meydan merger created a “real estate behemoth,” with USD bns worth of assets and land hedging against possible fluctuations in the property market, Bloomberg wrote. Dubai Holding — one of the main shareholders of property giant Emaar — also has a JV with Abu Dhabi’s largest developer, Aldar Properties.
Advisors: Our friends at Mashreq and Emirates NBD are underwriting the loan.
