12 year loan will be used to refinance the developer’s existing $359.9m bridge loan
Saudi developer, Jabal Omar Development Company, is in talks with a group of seven banks aimed at securing a $1.3bn loan by the end of this month.
The 12-year loan will be used to refinance the developer’s existing $359.9m bridge-loan and fund the development of the firm’s Makkah real estate project. The company has been seeking to raise long-term finance for the project for several years.
The bridge-loan was arranged in October 2010 and was originally set to expire in mid-2011, before banks granted an extension until July 2, 2012, to get the longer term financing completed.
The $2.7bn Jabal Omar project in the centre of the holy city includes 39 commercial and residential towers to be constructed on a 230,000m2 site.