Issue No 305 - 13 April 2009
ADCB in Bawabat Al Sharq finance deal

Baniyas Investment and Development Company (BID) have signed a deal with Abu Dhabi Commercial Bank (ADCB) to provide easy finance schemes for buyers of Bawabat Al Sharq, a mixed-use community development in Abu Dhabi.

Under the scheme, a total of 75 per cent of the value of the property will be offered as loan. The buyers will also enjoy zero loan processing fees and zero installments till the handover of the property, said an official of BID, the investment arm of Bani Yas Sports Club.

Wael Tawil, BID chief executive officer, pointed out that the current bank lending policies were making it quite difficult for end-users and investors to seek finance.

'Studying the need of the hour, we have responded to the current scenario. We have partnered with ADCB to offer zero per cent interest finance options to our clients, offering a unique opportunity in these very challenging times,' he noted.

'Our arrangement with ADCB symbolizes the confidence of the bank in our development. The agreement provides for both convention and Islamic mortgage finance, tailored for the needs of various clients,' he added.

An ADCB official said the bank has specially tailored made attractive and convenient installment plans for the buyers of the Dh3 billion ($816 million) Bawabat Al Sharq project.

'Considering the current financial scenario, it is extremely important for banks like us to be able to offer our customers with unique and attractive features that are exclusive to ADCB. Bawabat Al Sharq project is a well designed and a prestigious project and we are extremely happy to be able to finance this project,' he explained.

Under the first scheme, buyers pay only 25 per cent of the total property value at the time of purchase, while ADCB will finance the rest through an interest-free loan until the handover of the property.

This scheme involves a monthly payment of Dh500 to settle part of principal loan during the construction phase.

As per the second scheme, buyers pay only 17 per cent of the property value, while ADCB will finance the rest through an interest-free loan till handover of property.

By using any of the above mentioned schemes, the customer enjoys the benefit of zero installments, zero interest and zero processing fees until delivery of the project.

On completion of the property, the customer pays an additional 12.5 per cent of the total property value. The Equated Monthly Installment (EMI) commences only after the handover of the property.

Bawabat Al Sharq is spread across a massive 108 hectares of land and encompasses residential, retail, entertainment and sporting facilities.

Source: Trade Arabia News

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