DAMAC International has secured a development financing package of GBP175 million 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 ₤175 million across three major lenders including Barclays Bank, which acted as the UK lead bank, Burgan Bank, and Emirates NBD, completes the financing of the project, 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 United Kingdom 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,” he added.
DAMAC has been able to achieve close to 55 percent in private residential pre-sales, in what has been considered as challenging market conditions. The successful close highlights the confidence the banks have in DAMAC’s ability 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.
“Having become known for offering differentiated financial products, it was natural for us to partner up with DAMAC Group on this distinctive development, with a significant development financing package in the UK,” said Raashed Amin, CEO, Emirates NBD Bank, London Branch.
DAMAC Tower at Nine Elms will be the first in Europe to be designed in partnership with Italian fashion house, Versace Home. The 50-storey tower, to be delivered by Nine Elms Property Limited, a wholly owned subsidiary of DAMAC International, will comprise of studios, one, two and three bedroom apartments, and feature ‘winter gardens’ that offer panoramic views of the city.