ICBC contributes to a $300 million USD syndicated loan for the Viceroy Dubai Palm Jumeirah Project and the Viceroy Dubai Jumeirah Village Project (Linked to Record ID#89683, #92440, and #92441)

Project narrative

In January 2014, the Industrial and Commercial Bank of China (ICBC) provided a $201 million USD loan (AED 737.6 million) to Assas Investments Limited — a special purpose vehicle (SPV) — and SKAI Zaya Real Estate Development LLC for the Viceroy Dubai Palm Jumeirah Project (captured via Record ID#89683). SKAI Zaya Real Estate Development LLC is a subsidiary of Dubai-based real estate investment company SKAI Holdings. Assas Investments Limited is a SPV jointly owned by China State Construction Engineering Corporation (CSCEC) and SKAI Holdings. Then, in September 2015, a syndicate of seven banks provided a $300 million USD dual Islamic and conventional facility to Five Holdings (BVI) Limited — a Dubai-based real estate company — to support the construction of its Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village projects. ICBC, Agricultural Bank of China, and Bank of China (BOC) participated in this loan (Record ID#89684 captures ICBC's contribution to this loan; Record ID#92440 captures BOC's contribution; Record ID#92441 captures Agricultural Bank of China's contribution); the other members of the syndicate were Abu Dhabi Islamic Bank, China Minsheng Banking, Invest Bank, and Arab African International Bank. The facility had a maturity period of three years. Five Holdings repaid the debt in September 2017, 13 months before its final maturity date (October 2018). The total project cost was approximately $1.17 billion USD (AED 4.3 billion). The luxury resort, located at the base of the trunk of Palm Jumeirah, an archipelago of artificial islands in the shape of a palm tree in Dubai, featured 477 rooms and suites, 221 Viceroy Residences, 10 restaurants and nightlife venues, a spa, a pool, a beach, a health and wellness areas, and a children’s club. China State Construction Engineering Corporation Middle East (L.L.C) (CSCEC ME) was awarded the contract for project implementation in June 2013. Power Overseas Construction LLC, a Chinese construction company, worked as a subcontractor under CSCEC ME. Construction was planned to last 36 months, ending in the middle of 2016 with the hotel opening by the end of 2016. Construction began in December 2013. Trakhees, the regulatory arm of the Government of Dubai's Ports, Customs and Free Zone Corporation (PCFC), awarded a building permit and completion certificate (BCC) for the resort November 14, 2016, over two weeks ahead of schedule. The resort was planned to open to guests in March 2017. The hotel opened on March 31, 2017. In September 2017, Five Hotel FZCO, the lessee of the hotel, Assas Investments Limited and Five Holdings (BVI) Limited filed a lawsuit in California courts against Viceroy Hotels, LLC, Viceroy Hotel Management, Inc., William Walshe (CEO of Viceroy Hotel Management), and Kristie Goshow (SVP, Commercial, of Viceroy Hotel Management) for trade libel, defamation, and intentional interference with prospective economic advantage based on their dealings concerning the hotel. Specifically, the plaintiffs alleged that the defendants had conducted a campaign based in Los Angeles to disrupt the operation of the hotel by making false statements about the plaintiffs' alleged lack of authority to manage, operate, and book the hotel to the press, tour operators, travel agents, and other parties.