UAE investors eye up Blue City
Dubai's Essdar Capital Group announced on 22nd July that it was bidding for the "outstanding Class A (A1 and A3) Floating Rate Senior Secured Unrestricted Notes (the “Notes”) issued by Blue City Investments 1 Limited (“Blue City”) with outstanding principal amount of US$ 661.5 million."
If successful, the group might subsequently hold an aggregate of more than 75% of the notes. Essdar acknowledges that it already holds an undisclosed number of notes. It is prepared to pay between 50% to 71% of the original price of the bonds, which mature in 2013 and 2016.
On 28th July, the company extended the time frame for the offer to 5pm London time on 5th August. It will announce on 6th August whether the purchase will proceed. Payment is scheduled to follow on 11th August if the deal goes through.
The offer is not open to citizens of USA, UK, Italy, France or Belgium and is problematic in Luxembourg.
The senior managing director at the company described the potential investment as a high risk, high return strategy, but that the long-term outlook for real estate in the Gulf and particularly for this large project, was good.
The Essdar Group was established as an investment vehicle in 2007. Its component companies, Essdar Capital Ltd and Essdar Capital Managers Ltd are regulated by the Dubai Financial Services Authority.
Essdar's major shareholders are Capital Investment of Abu Dhabi, Dubai Holding, Royal Group, a conglomerate of 60 large to medium sized UAE companies headquartered in Abu Dhabi and Kuwait-based Al Mazaya Holding which is already operating three projects in Oman.
Update on 13th September 2009:
A press release on Essdar Capital's website announces that "all Notes tendered prior to the Expiration Time (as defined in the Invitation for Offers) have been accepted without pro-ration."
Weighted average offer price
Class A1 Floating Rate Senior Secured Unrestricted Notes due 2013 - $570.00 per $1000 principal amount
Class A3 Floating Rate Senior Secured Unrestricted Notes due 2016 - $543.67 per $1000 principal amount
No further news at this stage.
If successful, the group might subsequently hold an aggregate of more than 75% of the notes. Essdar acknowledges that it already holds an undisclosed number of notes. It is prepared to pay between 50% to 71% of the original price of the bonds, which mature in 2013 and 2016.
On 28th July, the company extended the time frame for the offer to 5pm London time on 5th August. It will announce on 6th August whether the purchase will proceed. Payment is scheduled to follow on 11th August if the deal goes through.
The offer is not open to citizens of USA, UK, Italy, France or Belgium and is problematic in Luxembourg.
The senior managing director at the company described the potential investment as a high risk, high return strategy, but that the long-term outlook for real estate in the Gulf and particularly for this large project, was good.
The Essdar Group was established as an investment vehicle in 2007. Its component companies, Essdar Capital Ltd and Essdar Capital Managers Ltd are regulated by the Dubai Financial Services Authority.
Essdar's major shareholders are Capital Investment of Abu Dhabi, Dubai Holding, Royal Group, a conglomerate of 60 large to medium sized UAE companies headquartered in Abu Dhabi and Kuwait-based Al Mazaya Holding which is already operating three projects in Oman.
Update on 13th September 2009:
A press release on Essdar Capital's website announces that "all Notes tendered prior to the Expiration Time (as defined in the Invitation for Offers) have been accepted without pro-ration."
Weighted average offer price
Class A1 Floating Rate Senior Secured Unrestricted Notes due 2013 - $570.00 per $1000 principal amount
Class A3 Floating Rate Senior Secured Unrestricted Notes due 2016 - $543.67 per $1000 principal amount
No further news at this stage.
Fitch ratings downgrades Blue City Investments 1 Ltd
With apologies for lack of comment as I am literally waiting to go into hospital. Although I don't think comment is particularly required.
Essentially, with fall in real estate investment in tourist resorts in Oman over last 18 months, and negligible sales at Blue City this year, there is a danger that the loan will be declared in default unless the loan sales test is restructured or income increases substantially. The date to watch is 7th November 2009.
Read the press release at Nasdaq and the article in Maktoob Business.
Essentially, with fall in real estate investment in tourist resorts in Oman over last 18 months, and negligible sales at Blue City this year, there is a danger that the loan will be declared in default unless the loan sales test is restructured or income increases substantially. The date to watch is 7th November 2009.
Read the press release at Nasdaq and the article in Maktoob Business.
A domestic link to Oman Sail
A prestigious sailing competition is in process in Europe. The iShares Cup is being fought over by ten sailing teams from around the world. Six events, each held over three days, are taking place for the Extreme 40, a scaled-up version of the Olympic class catamaran.
Oman is represented by two boats, the Renaissance and the Masirah, both falling within the ambit of 'Oman Sail', an ambitious programme to rekindle Oman's maritime heritage.
Mubarak al Battashi and Khamis al Anbouri from the Oman Sail Race Academy are rotating between both boats over the summer to obtain crewing experience. Any Omani is welcome to join the academy, providing they have commitment, loyalty and willingness to learn. There's also a hint that selection and training is "harder than special forces selection."
Renaissance is sponsored by Renaissance Group and Suhail Bahwan, and Masirah is backed by the Omani government.
Having already battled it out at Venice, the teams are currently sailing out of Hyeres in France. Masirah came first in today's races and is currently lying fourth on the team leaderboard. Renaissance lies third overall.
After Hyeres, four events are to come, including Cowes week at the beginning of August on the UK's Isle of Wight.
How is my family connected? My daughter, who lives and works on the Isle of Wight, has been responsible for supplying all the teams with disposable catering supplies. All the supplies are biodegradable, so that they can be tossed overboard into the sea after use with minimal impact, hopefully, on the environment.
Sailing is, on the whole, a 'high net worth' occupation, particularly when you're plying boats such as the Extreme 40. Bahrain has a Formula 1 Grand Prix, why shouldn't Oman aim at a superlative sailing competition?
That would presumably attract a lot of wealthy individuals to the country. It'll be interesting to see how Oman Sail develops.
Oman is represented by two boats, the Renaissance and the Masirah, both falling within the ambit of 'Oman Sail', an ambitious programme to rekindle Oman's maritime heritage.
Mubarak al Battashi and Khamis al Anbouri from the Oman Sail Race Academy are rotating between both boats over the summer to obtain crewing experience. Any Omani is welcome to join the academy, providing they have commitment, loyalty and willingness to learn. There's also a hint that selection and training is "harder than special forces selection."
Renaissance is sponsored by Renaissance Group and Suhail Bahwan, and Masirah is backed by the Omani government.
Having already battled it out at Venice, the teams are currently sailing out of Hyeres in France. Masirah came first in today's races and is currently lying fourth on the team leaderboard. Renaissance lies third overall.
After Hyeres, four events are to come, including Cowes week at the beginning of August on the UK's Isle of Wight.
How is my family connected? My daughter, who lives and works on the Isle of Wight, has been responsible for supplying all the teams with disposable catering supplies. All the supplies are biodegradable, so that they can be tossed overboard into the sea after use with minimal impact, hopefully, on the environment.
Sailing is, on the whole, a 'high net worth' occupation, particularly when you're plying boats such as the Extreme 40. Bahrain has a Formula 1 Grand Prix, why shouldn't Oman aim at a superlative sailing competition?
That would presumably attract a lot of wealthy individuals to the country. It'll be interesting to see how Oman Sail develops.