DUBAI, Dec 7 (Reuters) - Dubai’s Emaar Properties, builder of the world’s tallest tower, is in discussions with banks to obtain loan facilities in partnership with Dubai Properties, another major developer, sources familiar with the matter said.
Discussions are taking place on a bilateral basis with individual banks for a financing package which, according to one of the sources, could be as large as around 4 billion dirhams ($1.01 billion).
The money would back projects including a shopping mall and a tower, as Emaar – which last month sold a 20 percent stake in subsidiary Emaar Development in an initial public offer that raised $1.31 billion – embarks on new developments despite sluggish property prices in Dubai.
Emaar declined to comment while Dubai Properties, a unit of Dubai Holding, the investment vehicle of Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, did not respond to a request for comment. Emaar would raise the loan through a special purpose vehicle with Dubai Properties.
Emaar, the largest listed developer by market capitalisation in the Middle East and North Africa, develops residential properties, hotels, entertainment venues and malls.
Its latest financing was a $1.3 billion, five-year loan secured in September, $1.08 billion of which has been drawn down, according to a company presentation. (Editing by Andrew Torchia)