Arada, a newly-created United Arab Emirates-based property developer, has secured a $272 million (1 billion dirhams) Islamic syndicated loan from UAE banks to help fund a major project in the northern emirate of Sharjah, it said on Thursday.
The money will help pay for the Dh 24 billion Aljada, a project designed to cater for growing demand for more housing and leisure activities in the northern emirates.
Traditionally, the larger and more glitzy real estate developments have been confined to the wealthy southern emirates of Abu Dhabi and Dubai.
Abu Dhabi Commercial Bank and Dubai Islamic Bank acted as joint mandated lead arrangers and bookrunners on the transaction, Arada said.
Construction of Aljada will begin in the first quarter of 2018, with the first phase of the project to be delivered in 2019 and the entire development expected to be completed by 2025.
Arada was founded last year by Prince Khaled bin Alwaleed bin Talal, chairman of Dubai-based KBW Investments, and Sheikh Sultan bin Ahmed al-Qasimi, chairman of Basma Group, a Sharjah conglomerate.