Drake & Scull International (DSI), which is seeking to restructure around Dh1 billion of debt, is negotiating Dh750 million worth of contracts for a real estate development in Al Ain after clinching an intial contract worth Dh250m, the company said on Monday.
Gulf Technical Construction Company (GTCC), a subsidiary of the Dubai-based construction firm, won a Dh250 million contract to develop the mixed-use villa Nasayem project in Wahat Al Zaweya in Al Ain, which comprises 290 three-bedroom villas and 46 four-bedroom villas.
The Dubai-listed contractor expects to conclude talks in the first half of 2018 for securing additional contracts worth Dh750m within the Al Ain development.
“The new Wahat Al Zaweya contract is a great start towards what we expect to be an invigorated fiscal year marked by steady recovery and further stability,” said Rabih Abou Diwan, investor relations director at DSI. “We expect more of such positive developments in the coming months from GTCC and across all our divisions.”
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[ Drake & Scull expects to restructure Dh1 billion of Saudi debts by March ]
[ Drake & Scull losses deepen as restructuring continues ]
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DSI said earlier this month it expects to finalise restructuring of approximately Dh1bn of debt it raised for projects in Saudi Arabia by March-end this year. It will also begin negotiations with bondholders in the UAE to refinance Dh440m worth sukuk in the second half of 2018.
The Dubai contractor, which was hit hard by a slowdown in the Arabian Gulf economies, has already reached an agreement with a group of nine lenders to refinance Dh566m of corporate debt. Under the deal, agreed in the fourth quarter of 2017, the banks on average have extended the maturities by three years on loans, representing 56 per cent of the company’s total corporate general debt, which at the end of September last year stood at Dh1.07bn.
The company has secured new credit lines and working capital facilities for its ongoing and new projects portfolio. The Dh440m sukuk, due to mature in November 2019, makes up the remaining tranche of the DSI’s corporate general debt. The DSI group’s total bank debt at the end of the third quarter of 2017 had reached Dh2.92bn.
