Mubadala Real Estate & Infrastructure (‘MREI’), a business unit of Mubadala Development Company PJSC, and Gulf Related, a regional real estate development company focused on high-end retail, residential and mixed-use real estate developments in the Middle East, today announced that they have successfully refinanced the debt of their signature joint project, The Galleria on Al Maryah Island, with the National Bank of Abu Dhabi (NBAD). The AED 248 million (USD 67.4 million) refinancing facility will help The Galleria to further strengthen its capital structure, reduce its borrowing cost and generate over 50% in annual interest expense savings. The loan refinancing was signed following the successful opening and full leasing of The Galleria mall in August of this year.

The debt facility, which represents 60% of the total project cost of The Galleria over an eight-year term, was finalised today at a signing ceremony between Mubadala, Gulf Related and NBAD. Given its attractive terms and strong endorsement of the project, NBAD was the partner of choice to lead this refinancing.

Ali Eid AlMheiri, Executive Director of Mubadala Real Estate and Infrastructure (MREI), said: "We are proud to be working with NBAD on the refinancing of The Galleria. Our successful opening and full leasing of the project has made it possible for our joint-venture with Gulf Related to refinance the project’s existing debt at attractive terms. This is the second partnership with NBAD on Al Maryah Island and we look forward to growing our partnership with them.”

Alex Thursby, Group CEO of NBAD said: "NBAD is proud to be working with Mubadala and Gulf Related on this signature project. The recent opening of The Galleria and strong traction to date, as evidenced by the 100% leasing rate achieved, is a strong testimony to the strength and strong cashflows of the project and the appeal of Al Maryah Island as the premier retail and business destination in Abu Dhabi. Mubadala and Gulf Related had specific refinancing and structuring needs and we are pleased to have met their demands with this innovative financing structure. We look forward to working and growing our partnership with both Mubadala and Gulf Related in the future."

Dr Karim El Solh, Chief Executive Officer of Gulf Capital and co-Managing Partner of Gulf Related, said: "This innovative refinancing facility is an important part of our continued financial and operational enhancement of our Galleria investment and will allow us to optimise the capital structure of the project, reduce borrowing cost and enhance shareholder value. We are delighted with our partnership with NBAD and appreciate their vote of confidence in the future of The Galleria and Al Maryah Island as a premier retail and business destination in Abu Dhabi. Gulf Related is now firmly recognised as a leading real estate developer of mixed-use and marquee projects in the region.”
 

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