First Abu Dhabi Bank to auction Al Jaber’s Dubai Shangri-La hotel


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First Abu Dhabi Bank to auction Al Jaber’s Dubai Shangri-La hotel

First Abu Dhabi Bank, the largest lender in the Emirate of Abu Dhabi and United Arab Emirates, headquartered in Abu Dhabi, with assets worth of $186 billion as of December 31st, 2018, had started off an auction for a hotel in Dubai operated by the Shangri-La and owned by the debt-laden construction group, Al Jaber, while the base price of auction would be $190.59 million or 700 million Emirati Dirhams, at least two sources briefed directly over the subject-matter had unveiled earlier on Thursday, the 9th of January 2019.

In point of fact, Al Jaber’s latest sell-off of its Shangri-La hotel comes over the heels of a chaotic backdrop of the Emirati contractor’s operating returns, since the United Arab Emirates’ construction service, which failed to grapple with the consequences of the great financial depression between 2007-2009, had begun to raise an alarming bell about Al Jaber’s growing debt-pile.

Aside from that, one of the two sources familiar with the matter was quoted saying on Thursday (January 9th) that the auction processed and held by the First Abu Dhabi Bank, remarked the first phase for the creditors to recover some of their investments after a delay in a reconstruction agreement of the Shangri-La hotel had heightened up Al Jaber’s debt-pile to as little as 5.9 billion dirham last year.

Nonetheless, while being asked over the issue, Al Jaber neither declined nor acknowledged an auction for its Shangri-La hotel.