February 25, 2016 / 3:39 PM / 4 years ago

Dubai's TECOM Group talks to banks about 1 bln dirhams loan

DUBAI, Feb 25 (Reuters) - TECOM Group, a business park operator with a major role in developing Dubai’s economy, is in the market for a syndicated loan of up to 1 billion dirhams ($272 million), banking sources said on Thursday.

The company, a unit of sovereign investment vehicle Dubai Holding, was looking for funding with a 10 year lifespan to finance building projects in its business parks, two of the sources said.

One of the sources said the company hadn’t decided on the structure of any deal yet or how many buildings it wanted to finance.

TECOM was not immediately available to comment.

Dubai’s real estate market has softened in the past year as investment appetite has waned against a backdrop of reduced liquidity caused by low oil prices.

According to its website, TECOM operates 10 business communities, where around 4,650 businesses employ a total workforce of 74,000.

TECOM closed a general syndication of a loan of up to 4 billion dirhams in March last year, according to IFR, a Thomson Reuters unit.

$1 = 3.6727 UAE dirham Editing by Mark Potter

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