The Private Department of Sheikh Mohamed Bin Khalid Al Nahyan (PD) has successfully closed a landmark AED3bn ($816m) syndicated real estate financing, marking a significant milestone in the group’s financial strategy and capital markets journey.
The 10-year facility will be used to refinance existing bank debt on enhanced terms, settle sukuk obligations, and support general corporate purposes, strengthening PD’s long-term balance sheet position.
Secured against a high-quality portfolio of real estate assets across Abu Dhabi and Dubai, the structure provides PD with greater financial flexibility.
Landmark real estate finance deal
The transaction reflects strong institutional confidence in PD’s financial strength and long-term vision.
The syndicated loan was arranged by a consortium of leading local lenders:
- Abu Dhabi Commercial Bank PJSC (ADCB) and Mashreqbank PSC (Mashreq) acted as Joint Coordinators and Account Banks
- ADCB, Commercial Bank of Dubai PSC (CBD), and Mashreq acted as Joint Mandated Lead Arrangers and Bookrunners, as well as Hedging Banks
- Additional roles included ADCB as Facility Agent and Security Agent, and CBD as Market Hedge Coordinator
Dr. Ahmed Mansour, Chief Executive Officer of PD, said: “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.
“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.
“By this achievement, the Private Department has secured greater confidence from the local banks besides its successful DCM Programme update, which will be used for the upcoming issuances to maintain diversification of funding sources.
This loan syndicate with the attached terms, besides the updated Capital Market Programme, will significantly support the liquidity position that will be used to support future investments.
“This is expected to positively reflect in the Private Department’s future credit rating and capital market issuances.”
Established in 1964, PD is 100 per cent owned by members of the Abu Dhabi ruling family. The group owns one of the largest diversified recurring-income real estate portfolios in the UAE, including:
- More than 2,500 income-generating residential units
- 60,009 sq m of commercial space
- Two five-star operational hotels in Abu Dhabi and Dubai
The successful closure of the AED3bn ($816m) financing further strengthens PD’s position as one of the UAE’s most significant private real estate players.
