Qatar Real Estate News
The Gate development to be ready by September 2009
The Gate, a mixed use development project, currently undertaken by Salam Bounian Development Company, the real estate arm of Salam International, is due for completion in September 2009. The project offers commercial, retail and leisure amenities and is progressing as scheduled.
During last May, Salam Bounian had entered into Sukuk Financial deal for the Gate project, and in November all necessary documents were issued and completed for Sukuk bonds. The Sukuk issue amounted to $150m for a maturity period of 10 years and callable after 5 years.
The Gate appears to be an attractive offering to investors due to the following reasons:
The Gate is developed in favor of the Issuer, with the land value being $194,000,000 during construction phase, and on completion of the project, the value would increase to $404,510,640.
Being situated in a prime locality at the West Bay area, the project offers high-end retail and offices. Situated along a stretch of 3kms along The Gate, a total of 188 high rise towers, which are now under construction, include private residences, hotels, offices and commercial entities with a capacity to accommodate 13,800 people.
The joint lead managers of Sukuk, includes three leading banks in Qatar, namely, the Qatar National Bank, Qatar Islamic Bank, and Commercial Bank of Qatar, with excellent track record for offering financial products. The financial terms and conditions of sukuk are also quite favorable.
Salam Bounian had raised 95 percent of Sukuk that they needed, despite the harsh conditions in the market, and this was a huge success for the company, particularly, when keeping in mind that this was the first Sukuk, and the first fund-raising by the company.
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