The Private Department of Sheikh Mohamed Bin Khalid Al Nahyan has achieved a remarkable feat in the real estate financing landscape, securing a substantial $816 million loan. This landmark transaction underscores the group’s strategic financial maneuvers and reflects the growing institutional confidence in its long-term vision. The significant financing will enable the Private Department to optimize its capital structure while continuing to support its expansive real estate portfolio across key UAE markets.
The Private Department of Sheikh Mohamed Bin Khalid Al Nahyan (PD) has successfully closed a landmark AED3 billion ($816 million) syndicated real estate financing, marking a significant milestone in the group’s financial strategy and capital markets journey.
The 10-year facility will be utilized to refinance existing bank debt under enhanced terms, address sukuk obligations, and facilitate general corporate purposes. This strategic move is designed to strengthen PD’s long-term balance sheet position.
Secured against a high-quality portfolio of real estate assets located throughout Abu Dhabi and Dubai, the financing structure provides PD with greater financial flexibility, allowing it to navigate market dynamics effectively.
Landmark Real Estate Finance Deal
The transaction reflects robust institutional confidence in PD’s financial fortitude and visionary approach. The syndicated loan was coordinated by a consortium of distinguished local lenders, highlighting the collaborative effort in securing this financing.
Abu Dhabi Commercial Bank PJSC (ADCB) and Mashreqbank PSC (Mashreq) acted as Joint Coordinators and Account Banks. In addition, ADCB, Commercial Bank of Dubai PSC (CBD), and Mashreq took on roles as Joint Mandated Lead Arrangers and Bookrunners, alongside their responsibilities as Hedging Banks. Furthermore, ADCB served as Facility Agent and Security Agent, while CBD acted as Market Hedge Coordinator.
Dr. Ahmed Mansour, Chief Executive Officer of PD, remarked, “This is a milestone achievement. The Private Department has just managed to deliver one of its biggest goals in its financing strategy by closing this syndicate as well as updating its Debt Capital Market Programme.”
He added, “This marks one of the largest syndicated loans in the UAE real estate market, a very important step that supports the Private Department’s funding strategy and shapes its new capital structure in the future.”
Dr. Mansour emphasized, “By this achievement, the Private Department has secured greater confidence from local banks, in addition to its successful DCM Programme update, which will be used for upcoming issuances to maintain diversification of funding sources.”
The loan syndicate, along with the updated Capital Market Programme, is expected to significantly enhance PD’s liquidity position, serving as a foundation for future investments. “This is expected to positively reflect in the Private Department’s future credit rating and capital market issuances,” he concluded.
Founded in 1964, PD is fully owned by members of the Abu Dhabi ruling family and manages one of the largest diversified recurring-income real estate portfolios in the UAE. This impressive portfolio includes:
- More than 2,500 income-generating residential units
- 60,009 square meters of commercial space
- Two operational five-star hotels located in Abu Dhabi and Dubai
The successful closure of the AED3 billion ($816 million) financing further solidifies PD’s position as one of the UAE’s most significant private real estate players, poised for future growth and innovation in the evolving market. This strategic financing not only enhances the department’s capabilities but also reaffirms its commitment to excellence and sustainability in real estate development.