Al Waab City to raise $1.3bn to finance real estate project

Doha • Al Waab City, announced that it is in the process of raising a multi-tranched financing package of $1.3bn for a $3.3bn multi-purpose real estate development in the heart of Doha.

This follows the initial debt financing facility of $225m raised on April 8, 2007, structured as an Islamic finance Murabaha facility. The multi-tranch facility aims to raise $1bn in 8-year Senior Debt which is expected to be provided in US Dollars and Qatari Riyal tranches and be split into a conventional and Islamic facility. There is a further subordinated debt tranche of $250m being raised and an Equity Private Placement of $76m.

Al-Waab, a unit of family-owned NBK Holding, is an innovative mixed use real estate development in the heart of Doha incorporating villas, apartments, retail and commercial space.

The Senior Debt financing is currently in underwriting phase with a group of international, regional and local banks being invited to submit underwritten offers as Mandated Lead Arrangers (MLA). The initial close is expected by April 8 and documentation and syndication is expected thereafter. HSBC Bank Middle East Ltd is Lead Adviser on this tranche of the financing.

The subordinated debt tranche is being arranged as a Mezzanine debt fund by Shuaa Capital, Amwal and Kaupthing Bank as fund sponsors. The fund aims to raise capital from Local, regional and international investors for this and other similar projects through its fund. The company is also raising Equity through an Equity Private Placement.

HSBC Bank Middle East Ltd, Amwal and Kaupthing Bank are joint advisers to Al Waab City on the long term capital raising. The financing will be used for common infrastructure needs, construction of residential, retail and commercial space and initiating the project.

Al Waab City has been conceived as the physical representation of modern Qatari living. At the heart of it all is “Barahat Al Waab”, an urban piazza hosting spectacular facilities. This will be Doha’s first urban square or piazza, filled with shade structures, water features, formal landscaping and a spectacular sunken garden.

Sheikh Nawaf bin Nasser Al Thani, Chairman of NBK and Al Waab City, said: “This financing package will fully launch one of the most important real estate projects that Doha will see and will quickly become the benchmark for all future developments.”

Sheikha Hanadi Al Thani, CEO of Al Waab City, said: “Al Waab City will not only introduce a higher standard of living, but will also provide Doha with a family oriented community which will harmoniously combine state-of-the-art technology with a celebration of Islamic culture through architecture and landscaping; it will be a striking cohesion of Arabic heritage and modern technology.”