Nakheel in talks with banks for new Palm Island project

Nakheel in talks with banks for new Palm Island project

Troubled Dubai developer Nakheel is in talks with banks to raise financing for a new project on its man-made island Palm Jumeirah, worth at least 300 million dirhams ($81.68 million), its chairman said on Wednesday.

January 11, 2012 11:14 by Reuters

“We have all the financial options available to us. We’re in talks with banks. Banks are showing interest,”Ali Rashid Lootah told reporters.

The project, named “The Point”, is likely to be concluded by the end of 2013 and includes residential homes, retail shops, cafes and restaurants at the tip of the island, Lootah said.

Nakheel was hit by a property slump in the Gulf Arab emirate after it overstretched itself building islands in the shape of palms and other ambitious projects.

The developer completed the restructuring of a total of $16.06 billion in debt, including $8.71 billion of government debt which is to be converted into equity, last year.

Earlier this month, Lootah said the company is on track to deliver 7,000 units by end of the year and is also tendering new contracts in its retail segments.

Nakheel plans to issue the second tranche of its Islamic bond by June, he said, which will be used to settle contractor claims. ($1 = 3.6730 UAE dirhams) (Reporting by Mirna Sleiman, Writing by Dinesh Nair,; Editing by Rachna Uppal)