Saudi Arabian property developer Jabal Omar Development Company has secured $427m (SAR1.6bn) credit facilities for the Jabal Omar project.
The company has signed an agreement with the Kingdom of Saudi Arabia, acting through the Ministry of Finance (MOF) which issued a guarantee to Banque Saudi Fransi for the purpose of providing the credit facilities to the company.
The funding, provided for a period of 15 years, will be used to complete work on the third phase of the Jabal Omar project. Its tenor will start from the date of signing the facility agreements on 8 March 2021.
The project, which includes four towers with 2,160 rooms and a total commercial area of 26,435m², houses an array of hotels, apartments, residential units, and malls.
Upon completion, it will have a variety of five- and four-star hotels with the capacity to host up to 36,000 guests a year and more than 100,000 visitors during Hajj season.
The Jabal Omar project is also a monumental cluster of hotel operated apartments as well as units.
Jabal Omar Development Company operates the Jabal Omar complex of hotels and residential and commercial property located close to the Grand Mosque in the Muslim holy city of Mecca.
The company said in a statement: “The guarantee was issued after agreeing on a number of representations and warranties to MOF, in addition to updating the mortgage registered previously to include the amount of the guarantee.”
Reuters quoted a source familiar with the matter as saying: “Jabal Omar has been hit hard by Mecca lockdown following Covid-19 and the guarantee would support the main developer of the Mecca complex.”