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.
Comments
Dubai Property wrote:
04/19/11 03:50:48
UAE is a vast investor’s state particularly Dubai because Dubai has a lot of oil wealth and mostly investors are indirectly connected with oil field. Due to recession in Dubai, many investors are trying to move from Dubai. In my opinion, Dubai recession's main cause is an experiment work on buildings that is why these investors suffered from very big loss.