Dubai-based development company Meydan Group is reportedly seeking a syndicated loan of at least $122.5 million to finance a hotel project.
Sources told Reuters that Commercial Bank of Dubai was leading the discussions for a potential transaction, with one adding the financing was expected to close before the end of November.
Meydan is building several projects in the emirate, including the two-mile Dubai Canal between Dubai's Business Bay and the coast, and additional real estate projects next to its Meydan Racecourse.
Earlier this year, the company announced plans to build a luxury hotel on Jumeirah Beach Residence. Meghnad Warrier, Meydan Group’s VP of finance, said that the completed hotel will have around 260 rooms, including hotel and serviced apartments. In June, Corinthia Hotels signed a deal with Meydan to manage a luxury beachfront resort currently under construction on the site of the former Meydan Beach Club. The completed hotel is expected to have 300 guestrooms and 60 serviced apartments when it opens in 2019.
In March, Meydan signed a deal to obtain $476 million of financing from Qatar National Bank and QNB's United Arab Emirates affiliate Commercial Bank International, to support investment in new projects. It also obtained 1 billion dirhams of Islamic financing in June to strengthen Meydan's capital structure, diversify its investor base and support new projects.