DUBAI, UAE - Dubai property developer Damac Properties has secured a £175 million financing package for a residential development in London.
Damac released a statement on Monday in Dubai saying it was being joined by Barclays Bank, the Kuwaiti bank Burgan Bank and Emirates NBD (Dubai’s largest bank) in funding Damac Tower which is to be built at Nine Elms on South Bank in London, the company's first venture outside the Middle East.
"In a vote of confidence in the UK and Damac’s track record, we have secured significant support to complete our distinctive residential development in London," Hussain Sajwani, the Chairman of Damac said Monday.
Sajwani said with the current project wrapped up, his company is now looking at a second opportunity in London, and discussions are underway to secure the site.
The initial London project, Damac Tower, will be the first building in Europe to be designed in partnership with Italian fashion house, Versace Home.
The building, being undertaken by Australian construction giant Multiplex, consists of two towers, a North Tower topping out at fifty floors, and a 24-level South Tower. The building will consist of 1, 2 and 3 bedroom apartments, 360 in all. There will be a sky bridge connectring the two towers, and five stories of commercial office space.
The twin-tower project is being developed by a 100%-owned subsidiary of Damac, Nine Elms Property.
Damac is listed on the Dubai Financial Market where its shares are trading at a six-year low due to the massive oversupply in Dubai which has seen the property market in the emirate slide to its lowest level since the GFC in 2008. With tens of thousands of new apartments ands villas under construction, the outlook is grim - hence the attraction for Dubai based developers to look elsewehere for opportunities.