Dubai: Bank funds are starting to flow into Abu Dhabi’s real estate development sector. Abu Dhabi Commercial Bank (ADCB) has signed a Dh950 million term facility to provide National Investment Corporation with the working capital for a new Fairmont Hotel complex. It will encompass a 45-floor twin-tower structure that will accommodate a five-star hotel and residential apartments located on the Abu Dhabi breakwater, close to Marina Mall.
The 10-year loan is the first such facility agreed between ADCB and NIC, which also owns Marina Mall. ADCB is the main lender for the project.
“NIC has played an important role in development of the whole area including the high-end residential villas and the iconic Marina Mall,” said Abdullah Ali Al Saadi, managing director of NIC. “This new branded development, which will be managed by Fairmont, will provide further opportunities for UAE Nationals to buy properties at such a prime location.”
According to Howard Gaunt, head - corporate and business banking group at ADCB, “The tourism sector is a vital contributor to the nation’s development and this strategic partnership is testimony to the confidence we have in National Investment Corporation to deliver on its reputation for first-class developments.”
In the latest Abu Dhabi realty overview from JLL, the emirate’s hotel sector saw occupancies increase to 76 per cent in the first two months. “While ADRs (average daily rates) remain under pressure (decreasing by 14 per cent in year-to-February 2014 compared to the same period in 2013), the hotel market has started to recover and is set to experience improved performance over the rest of 2014,” the report added.
