Developer announces project financing agreement with Mashreq Bank in the form of two AED600 million and AED400 million loans
Arada has secured two syndicated loans worth a total of AED1 billion with Mashreq Bank, a leading financial institution in the UAE. The two Islamic facilities, worth AED600 million and AED400 million, will contribute towards funding the developer’s two lifestyle projects in Sharjah, Aljada and Nasma Residences, respectively. The announcement follows a previous AED1 billion facility that was arranged in December 2017.
HH Sheikh Sultan bin Ahmed Al Qasimi, Chairman of Arada, said: “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. These facilities will enable us to continue our excellent progress at Aljada and complete all construction at Nasma Residences, where we are preparing to hand over our first homes. 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.”
Ahmed Abdelaal, Executive Vice President, Head of Corporate and Investment Banking Group, at Mashreq Bank, said: “We are pleased to be collaborating with Arada on the development of these two landmark communities for Sharjah. We are not only confident in the management of Arada and their further growth ambitions but also in Sharjah’s real estate market that is positioned to be a major destination for real estate investment in the region. 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. This is an encouraging sign for the local economy which will further drive investments into the property market. We at Mashreq Bank are committed to the development of the local economy in all areas of the UAE.”
Aljada, a master-planned destination with a sales value of AED24 billion that is set to transform the future of Sharjah, was unveiled by HH Sheikh Dr Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, during an exclusive ceremony in September 2017.
Sharjah’s largest ever mixed-use community, Aljada is ideally situated on the last major plot of undeveloped land in the heart of the city. The 24 million square foot megaproject has exceptional connectivity to surrounding areas, and is an all-encompassing district that comprises considerable retail, leisure and entertainment options, in addition to a wide range of residential and commercial offerings.
Construction on Aljada has already begun, with the first homes scheduled to be handed over by the end of this year. The first phase of the Central Hub, the UAE’s newest leisure and entertainment destination, which has been designed by Zaha Hadid Architects, will be opened in September this year. Containing Arada’s experiential Sales Centre, as well as events spaces, children’s play areas and a food truck zone, Sharjah’s newest community space will be complemented by a packed calendar of family-friendly activities.
Launched in March 2017, Nasma Residences became Sharjah’s fastest-selling community when its first phase sold out in less than a month. Featuring over 900 homes, as well landscaped parks, a GEMS international school and two retail centres, Nasma Residences is spread out over a 5 million square foot plot in the heart of New Sharjah, with excellent connectivity to Dubai and the Northern Emirates. Construction work on the first three phases of Nasma Residences has already begun, with the first units due to be handed over in the coming days.
In total, Arada has now sold in excess of 3,500 units across both projects in just over two years.
Related: Arada to open first overseas office in Riyadh as it expands operations in Kingdom of Saudi Arabia
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