Dubai Holding arm given Dh2 billion loan extension

The Dubai Holding Commercial Operations Group, which is rearranging its finances, has been given an extension on a $555 million loan for the third time.

Dubailand, an asset of Dubai Holding, is viewed behind its gate in Dubai.

The property and hospitality arm of Dubai Holding has received a one-month extension on a $555 million (Dh2bn) loan to give it more time to rearrange its finances.

It is the third time Dubai Holding Commercial Operations Group (DHCOG) has extended its deadline on the loan.

The latest extension will involve the deadline being pushed back until December 30 when the rolling credit facility will be converted into a long-term loan, said a spokesman for the firm.

DHCOG suffered from a sharp decline in the emirate's property market in which prices fell by more than 50 per cent from their peaks.

It is not the only struggling division of Dubai Holding, the diversified conglomerate owned by Sheikh Mohammed bin Rashid, the Vice President of the UAE and Ruler of Dubai.

Dubai International Capital, the private equity arm of Dubai Holding, was expected to seek a fresh extension on the repayment of a US$1.25 billion (Dh4.59bn) loan when a debt restructuring deadline expired on Monday.