- 10 year dual tranche, comprising conventional and Islamic facilities.
- QInvest acting as Financial Advisor and Bookrunner with Commercial Bank and Barwa Bank as Mandated Lead Arrangers.
- The largest Qatari private sector syndicated transaction.
- The QAR 6 billion Doha Festival City to comprise of the first Ikea store in Qatar as well as a mall of 260,000 sqm gross leasable area.
Bawabat Al Shamal Real Estate Company WLL (BASREC) has
signed a QAR 3.7 billion 10 year syndicated facility to
finance the development of the Doha Festival City
project.
QInvest acted as Financial Advisor to BASREC and Sole
Bookrunner for the facility. Commercial Bank of Qatar
(CBQ) and Barwa Bank took the Mandate Lead Arranger (MLA)
roles with CBQ who was the original lender also acting as
the Lead and Documentation Bank on the conventional
tranche as well as the conventional Facility Agent. Barwa
Bank was the Lead and Agent Bank on the Islamic tranche,
also taking the role of Islamic Documentation Bank.
The MLAs were joined in the facility at Lead Arranger
level, across the two tranches, by Ahli Bank, Doha Bank,
International Bank of Qatar, Al Khalij Commercial Bank (al
khaliji) , Qatar International Islamic Bank and Qatar
National Bank.
Doha Festival City is owned and being developed by BASREC
which is comprised of investors Al Futtaim Real Estate
Services, Qatar Islamic Bank, Aqar Real Estate Development
And Investment and a private Qatari investor. The QAR 6
billion complex is being constructed on a 433,847sqm plot
which will include 260,000sqm gross leasable area of
retail space offering over 500 retail units which will
include a large number of new brands to Qatar. In
addition, the project will boast the first Ikea store in
Qatar, and will feature an entertainment and leisure
complex, automotive showrooms, international hotels and
convention centre.
The development is located just north of downtown Doha on
Al Shamal Road, one of the main arterial routes to the
city centre, and the route that will eventually connect
Doha with Bahrain via the Qatar-Bahrain Causeway. With its
strategic positioning, the super-regional complex is
ideally equipped to meet the retail, hospitality and
entertainment needs of not only Qatar, but also of
neighboring countries.
The first phase, the 32,000 sqm IKEA store, is due for
completion in Q1 2013, while the remaining components of
Doha Festival City will be delivered in 2015.
Speaking on the occasion of the signing ceremony, Marwan
Shehadeh, General Manager of BASREC, commented: "We are
pleased to announce this transaction as the agreement
today is a key step on the road to developing this major
project. This financing will ensure the work on Doha
Festival City will progress well and according to
plan”.
He further added: “We are pleased to be working with such
strong and committed banking partners. The signing of this
transaction is a testimony to the confidence that our
banking partners have in this distinguished and iconic
project".
Ahmad Meshari, Acting Chief Executive Officer of Qatar
Islamic Bank commented: “We are pleased that our
confidence in this project demonstrated by our investment
is supported by BASREC’s banking partners through this
transaction. We are confident that the project will have a
very positive impact on the local economy, reflecting our
strong commitment to the economic development of the State
of Qatar”.
Andrew Stevens, Group Chief Executive Officer of
Commercial Bank of Qatar commented: "We consider this as
an important transaction for Qatar as a whole and
Commercial Bank of Qatar is honored to be leading the
banking group in partnering with Doha Festival City to
deliver on the iconic plans for this development".
Steve Troop, Chief Executive Officer of Barwa Bank, added:
"We value the relationship that we have built with Doha
Festival City and believe that the management of the
project has a strong history which complements our
strategy to strengthen our portfolio. In this regard, we
are pleased to be leading the Islamic tranche of the
financing".
Shahzad Shahbaz, Chief Executive Officer of QInvest,
commented: "The success of this deal is a testament to the
efforts of the teams involved in the project and the
transaction. QInvest has advised BASREC and its
shareholders through a number of initiatives and we are
pleased with the partnerships that have been brought
together to develop Doha Festival City".