Dubai’s Palm Island developer gets $4.6 bln for new waterfront projects

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Dubai state developer Nakheel has secured $4.63 billion in financing as the group behind the palm-shaped islands accelerates plans for new waterfront projects including Dubai Islands amid a red hot property market.

Nakheel said in a statement on Tuesday the financing was done through a syndicate of three banks, Emirates NBD, MashreqBank and Dubai Islamic Bank.

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The transaction comprises of about $3 billion in refinancing and additional funds of $1.64 billion through the syndicate.

Nakheel, which was forced into a massive debt restructuring following Dubai’s 2009-2010 real estate crash, is cashing in on a rise in demand for coastal properties in the wake of the coronavirus pandemic.

Nakheel is planning to develop another man-made island named Dubai Islands, formerly known as Deira Islands, comprising five islands over a total area of 17 sq km.

A Nakheel spokesperson said the transactions will further strengthen its financial position, and reflects the confidence of the banking institutions in the strategic new focus of the company.

The real estate market in Dubai, the Middle East’s financial and tourism hub, began its recovery early last year in the wake of the coronavirus pandemic as the government kept its economy and airports mostly open.

First-half residential real estate transaction volumes rose 60 percent, with an 85 percent rise in the value of properties sold, property consultancy Betterhomes said in a July report.

A villa on Nakheel’s Palm Jumeirah island in July fetched $82.36 million in October, its developer Alpago Properties said without naming the buyer due to privacy reasons, setting a new record for the most expensive residential property ever sold in the emirate.

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