The First Bank Abu Dhabi (FAB), the largest lender in the United Arab Emirates, has reportedly commenced with the auction process for a hotel in Dubai operated by the Shangri-La and owned by construction group Al Jaber.
Reuters reported that the starting price is AED 700 million ($ 190.59 million). FAB is the main lender for the Shangri-La hotel.
Al Jaber, the debt-ridden contractor, has been struggling since downturn hit the real estate and construction market in the UAE.
The auction marks the first step by creditors to “recover funds after delays to a restructuring agreement for 5.9 billion dirhams of debt last year,” sources told Reuters.
Creditors for Al Jaber group includes Abu Dhabi lender Abu Dhabi Commercial Bank.