Following a deal signed on 29 June 2014, Al Hamra Real Estate Development has upsized its existing AED850 million (US$230 million) debt facility by a further AED400 million (US$109 million). The facility, which was provided by a syndicate of global and local lender, will be used for general corporate purposes and for capex.

As with the first transaction, Goldman Sachs acted as mandated lead arranger and sole bookrunner, with the original lenders Abu Dhabi Commercial Bank PJSC, Commercial Bank of Dubai PSC and Union National Bank PJSC participating in the upsize, said Benoy Kurien, General Manager of Al Hamra Real Estate Development.

“We are delighted to announce the expansion of our debt facility and the extension of our relationship with Goldman Sachs. Our ability to draw on additional financing will not only support new projects, but is also an indication of the understanding and trust that we have developed with one of the world’s leading financial institution,” he said.

The funds will be used to fund the expansion of Manar Mall, and is expected to have an “overall” interest rate of 3.3 percent. Al Hamra Real Estate Development plans to expand Manar Mall by 88 percent and may use the funds to develop a 5-star hotel.

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