Omniyat, a private real estate developer in the UAE, has secured Dh500 million of bank financing over five years to build a Dh1.34bn mixed-use scheme in Dubai's Business Bay.
“Construction on site has already begun and we are preparing to announce the world-famous hospitality and lifestyle brand that will take up this space in the new Marasi development on Dubai Canal,” said Mark Phoenix, managing director of Omniyat.
The scheme is to be developed in partnership with Saudi Arabian conglomerate Rashed Al Rashed Group and Jenina Real Estate Development Company, a vehicle set up by Saud Kanoo, who is the deputy chairman of Bahrain-based family firm Yusuf Bin Ahmed Kanoo Group and chairman of Meritas Holdings, Omniyat said in a statement on Monday.
The sharia-compliant facility with Ajman Bank will help Omniyat to fund the construction of a luxury hotel, private residences and retail development, scheduled for completion by 2020. The project will be officially unveiled in the first quarter of 2018, the developer said.
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“The facilities are structured in line with Sharia compliant practices for a tenure of five years. We are confident the project will be successfully delivered on time,” said Akram Khan, group head of wholesale banking at Omniyat.
Omniyat claims to have a Dh23 billion portfolio of real estate, mainly comprising luxury hospitality-led schemes along the Dubai Canal in Business Bay, which is in Downtown Dubai, close to the Burj Khalifa.
Among its schemes are the high-end Dh2.5bn The Opus building, designed by the late architect Zaha Hadid, which is due to be operated by Spanish hotels group Melia, the Bayswater commercial towers, and The One by Omniyat on Palm Jumeirah island.
The new Business Bay project is expected to cement Omniyat’s move into the ‘lifestyle’ sector, the developer said. It will be “one of the biggest hospitality announcements Dubai has seen”.
Mr Phoenix told The National in September that Omniyat plans to move into lower bracket "affordable" housing, but bring something "a little bit more 'designer'" than the segment typically offers.
Residential rents and hotel revenues dropped in most parts of Dubai during 2017 due to subdued demand and a fight for affordability. The mid-market segment is set to continue garnering the most interest from real estate investors in 2018, analysts say.