Al Waab City raising $1.3bn long term financing for a multi-purpose real estate development in the heart of Doha

This follows the initial debt financing facility of $225m raised on 8th April 2007, structured as an Islamic finance Murabaha facility.

The multi-tranch facility aims to raise US$ 1bn in 8 year Senior Debt which is expected to be provided in US Dollars and Qatari Riyal tranches and be split into a conventional and Islamic facility.

There is a further subordinated debt tranche of $250m being raised and an Equity Private Placement of $76m.

Al Waab City is an innovative mixed use real estate development in the heart of Doha incorporating villas, apartments, retail and commercial space in a cohesive and landscaped environment with architectural sensitivity to local Arabic traditions.

The Senior Debt financing is currently in underwriting phase with a group of international, regional and local banks being invited to submit underwritten offers as Mandated Lead Arrangers ("MLA").

The initial close is expected by 8th April 2008 and documentation and syndication is expected thereafter. HSBC Bank Middle East Ltd is Lead Adviser on this tranche of the financing.

The subordinated debt tranche is being arranged as a Mezzanine debt fund by Shuaa Capital, Amwal and Kaupthing Bank as fund sponsors.

The fund aims to raise capital from Local, regional and international investors for this and other similar projects through its fund. The company is also raising Equity through an Equity Private Placement.

HSBC Bank Middle East Ltd, Amwal and Kaupthing Bank are joint advisers to Al Waab City on the long term capital raising.

The financing will be used for common infrastructure needs, construction of residential, retail and commercial space and initiating the project.

Al Waab City has been conceived as the physical representation of modern Qatari living. Al Waab City, founded on the principle that at the heart of every vibrant community is a public gathering space, will be a community that is integrated into the existing fabric of the city.

At the heart of it all is "Barahat Al Waab", an urban piazza hosting an array of spectacular facilities. This will be Doha's first urban square or piazza, filled with shade structures, water features, formal landscaping and a spectacular sunken garden.

"Barahat Al Waab" is accessible to all residents by foot via picturesque green spaces eliminating vehicular crossings.

Animated with outdoor cafes, restaurants, street vendors and a world class hotel, "Barahat Al Waab" will be the center of activity in Al Waab City, a place for public events, concerts and exhibitions.

Sheikh Nawaf Bin Nasser Al Thani, Chairman of NBK and Al Waab City W.L.L., stated that "This financing package will fully launch one of the most important real estate projects that Doha will see and will quickly become the benchmark for all future developments".

Sheikha Hanadi Al Thani, CEO of Al Waab City W.L.L., further added that "Al Waab City will not only introduce a higher standard of living, but will also provide Doha with a family oriented community which will harmoniously combine state-of-the-art technology with a celebration of Islamic culture through architecture and landscaping; it will be a striking cohesion of Arabic heritage and modern technology".

The first phase of the project comprising showrooms located along Salwa Road has commenced construction and will be completed by September 2008.

Residential villas have also commenced construction and will be available for sale to Qatari and GCC nationals from middle of 2008.

At the same time, Al Waab City has commenced the construction of over 589 residential villas and 1,466 apartments varying in size and design; 340,000 square metres of retail, commercial and office space, a 200 room boutique hotel and numerous amenities including health clubs, shops, cafes, a supermarket and cinema.

The project will be the leading mixed use development in Doha located in the heart of the City with completion in phases between 2008 and 2010. With a commitment to providing and encouraging environmentally friendly solutions, Al Waab City will also include over 30 hectares of lush landscaping and pedestrian walkways with a focus on energy saving and recycling.

Al Waab City has commenced construction work on this ambitious project with a view to bringing to Doha the opportunity to buy and rent accommodation, offices and retail space along with a real sense of community and a destination to visit.

It will the first all purpose multi-use development to be completed in Doha and will give the residents of Doha and Citizens of Qatar real choice in their living, working and leisure environment.