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Stalled Omani project purchased by Essdar Capital

Essdar said to have acquired the project for ’63 cents on the dollar.’

June 9, 2010 10:10 by

In what could be the first in a series of similar tenders, a ‘distressed real estate transaction’ is expected to transpire as early as Wednesday between a stranded Omani real estate project and Essdar Capital Holding, the Financial Times reported today. The ‘senior debt’ portion of the stalled Blue City tourism and real estate project in Oman will likely be purchased by the Abu Dhabi-backed Essdar fund, the paper said Wednesday.

According to the report, Essdar Capital has made an offer to purchase nearly all of the class A debt held by Blue City, in a deal worth a reported $655 mn. The transaction will confer to Essdar 99.1 percent of Blue City’s senior debt, according to unnamed sources quoted by the Times.

The tender offer from Essdar is reported to have acquired the assets of Blue City for an estimated 63 cents on the dollar. Essdar Capital is a private holdings company with financial services including asset management, investment banking, firms, and funds, according to Zawya Dow Jones.

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