Dubai’s Five Holdings repays Dhs1.1bn financing over a year ahead of schedule

Dubai developer Five Holdings (previously known as Skai) has repaid its Dhs1.1bn syndicated finance package 13 months ahead of schedule, it announced on Tuesday.

The international syndicate for the dual Islamic and conventional financing was backed by seven financial institutions, including Abu Dhabi Islamic Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Minsheng Banking Corp, Invest Bank and Arab African International Bank.

The amount raised was used to support the construction of Five Holdings’ luxury hotel in Palm Jumeirah and the Dhs1.28bn Five Jumeirah Village Dubai project.

“Five Holdings’ ability to repay our syndicated finance package early is a result of our strong cash flows,” said Kabir Mulchandani, group chairman and CEO, Five Holdings.

The Palm Jumeirah property, which opened its doors in March 2017, is currently facing a dispute from global hotel operator Viceroy – which was previously managing the hotel.

Read more: Viceroy denies allegations of US lawsuit filed by Dubai’s Five Holdings

Five’s Jumeirah Village Dubai project, slated to open in Q4 2018, is a luxury 60-storey tower which will feature 247 hotel rooms and suites, 221 one and two-bedroom hotel apartments and 33 four-bedroom hotel apartments, all with private pools.

In May 2017, the company confirmed that it had completed 40 per cent of the project’s construction.

The project, launched in 2014, was also meant to operate under the Viceroy brand.

Read more: Skai rebrands Jumeirah Village Circle property to Viceroy

But it will now be operated and managed by Five.

In June this year, Five Holdings announced the launch of its new hospitality brand, Five Hospitality, which operates the Palm Jumeirah hotel and will manage three future hotels and residences, worth a total value of Dhs7.2bn.