The two Islamic facilities follow a previous AED 1bn facility arranged in December 2017
Developer Arada has secured two loans worth a total of AED1 billion ($270m) from Mashreq Bank to help fund its Aljada and Nasma Residences projects in Sharjah, the company announced on Wednesday.
The two Islamic facilities are worth AED600 million and AED400 million and follow a previous AED1 billion facility arranged in December 2017.
“We see the successful closure of this transaction as a sign of confidence not just in Arada but in the entire Sharjah property market as well,” said Arada chairman Sheikh Sultan bin Ahmed Al Qasimi.
“These facilities will enable us to continue our excellent progress at Aljada and complete all construction as Nasma Residences, where we are preparing to hand over our first homes,” he added. “We would like to thank our partners at Mashreq Bank and look forward to working with them as we bring these two projects to fruition.”
The 24 million square foot Aljada project has an estimated sales value of AED24 million and includes retail, leisure and entertainment options in addition to residences. Construction at the site has already begun, with the first homes scheduled to be handed over by the end of the year.
The first phase of the Central Hub – designed by Zaha Hadid Architects – will be opened in September.
Launched in March 2017, Nasma Residences features over 900 homes as well as parks, a school and two retailers over a 5 million square foot plot in New Sharjah. Work has already begun on the first three phases has already begun, with handover of the first units expected shortly.
“We are not only confident in the management of Arada and their further growth ambitions, but also in Sharjah’s real estate market,” said Ahmed Abdelaal, executive vice president and head of corporate and investment banking group at Mashreq Bank.
“The emirate has introduced various initiatives recently to stimulate the real estate sector, including allowing expats residing in the UAE to purchase property in Sharjah on a 100-year renewable land lease,” he added. “This is an encouraging sign for the local economy which will further drive investments into the property market.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.