In a clear demonstration of the United Kingdom’s attractiveness as a long-term destination for foreign direct investment, DAMAC International has secured a development financing package of £175m 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 £175m across three major lenders including Barclays Bank, which acted as the UK lead bank, Burgan Bank, and Emirates NBD, completes the financing of the luxury tower, 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.”
Indications of market stabilization
Speaking to Arabian Business, Niall McLoughlin, Senior Vice President of DAMAC Properties, said the Dubai market is competitive, but is already experiencing the bottom of the cycle.
“You have to look at the market in general. It’s the bottom of the cycle and it’s very competitive, [but] we’re optimistic for the next couple of years with the supply-demand dynamic out of Dubai,” he said.
“Too much supply in the market will balance out. We’re optimistic for the next couple of years. It’s just a question of seeing this period of the cycle,” McLoughlin added. “We can’t focus on the negativity. We focus on the productive aspect of the market, a sign of upturn in the market. We’ve committed to deliveries, and we’re delivering 8,000 units this year – [our] biggest delivery in history,” he said.
DAMAC Tower at Nine Elms will be the first in Europe to be designed in partnership with famous Italian fashion house, Versace Home. The 50-story tower, located in one of London’s most prestigious residential addresses and delivered by Nine Elms Property Limited, a wholly owned subsidiary of DAMAC International, will comprise of studios, one, two and three bedroom apartments, complemented by premium finishings, and feature special ‘winter gardens’ that offer panoramic views of the city.