International law firm Trowers & Hamlins advised Ahli Bank S.A.O.G. as the lender, account bank, facility agent and security agent on term loan facilities aggregating to OMR 52,000,000 to Great Blue City S.A.O.C., an investee company of Oman's sovereign wealth fund, Oman Investment Authority.
The financing supports construction of one of the largest-scale mixed-use developments in the Sultanate of Oman, the Blue City Project, a waterfront city stretching across 16 kilometres of coastline owned by Great Blue City Development S.A.O.C. It is aimed at resuming and streamlining operations, which integrate residential, commercial and municipal developments including a 5-star hotel, lagoon villas, serviced and residential apartments, marinas and water canals, and also covers working capital requirements for the project.
The project is an implementation of the agreement between the Government of Oman, represented by the Ministry of Tourism and Heritage and Al Sawadi Investment and Tourism L.L.C., the project developer. Designed as an integrated tourism destination, the development reinforces Oman's vision to diversify its economy and expanding its hospitality and tourism infrastructure.
Trowers advised on all matters in relation to the financing and real estate elements, particularly on various lender and regulatory consents required, carrying out the title diligence, the preparation of the suite of documentation, leading the negotiations, dealing with complex security sharing arrangement across hotel and infrastructure assets and coordination with key stakeholders to align commercial and legal position across all facilities. Trowers has also been instrumental in dealing with the hospitality contracts, and the interplay of lender rights vis-à-vis the rights of the owner and hotel brand.
Debo commented:
"We are pleased to have supported Ahli Bank on this significant financing, which will help to advance one of the most ambitious mixed-use developments in the Middle East. The Blue City Project is a landmark initiative for Oman, with the potential to transform the tourism and hospitality landscape, and we are proud to play a role in enabling its continued progress.
This transaction underscores our ability to bring together multi-jurisdictional expertise to deliver for our clients on complex, large-scale financings. The successful outcome is the result of close collaboration between our teams in the GCC region, and reflects our strong commitment to supporting Oman’s long-term economic diversification agenda."
This transaction drew on Trowers & Hamlins' extensive local, regional, and international experience, with a team of lawyers from the firm's offices in Oman, Bahrain, the UAE, Singapore and Malaysia. The matter was overall led by Debopam Dutta, Partner – International Banking and Finance, with strategic inputs from Salman Ahmed (Partner) and Roger Clarke (Special Counsel), with support from Phoebe Lim (Senior Associate), Jian-Jie Phang, Rashi Jain and Kasab Vora (Associates), Mezoon Zakiuddin (Paralegal), AlShaima Al Hinai, Alexandra Hill, Chris Yabsley and Fatma Al Mataani (Trainee Solicitors) on the financing aspects, and Shirin Pishbin (Legal Director), Naffisa Razzaq (Associate), Phoebe Beardshall and Alice Spencer (Trainee Solicitors) on the real estate elements.
The deal demonstrated strong collaboration and seamless interplay between the firm's International Banking and Finance and International Real Estate teams, which was instrumental in its successful execution.
