Ziad Sweidi, head of sales for the project at IFA, said that the loan will be used to finance the second and third phases of construction. Construction of the second phase will commence in October or November, said Sweidi while designs will be released in May.

The loan will be divided into two tranches. The first tranche of $12 million will finance the second phase of development of the project while the remaining $18 million will finance its third phase.

Fransa Invest which organized and structured the loan and will be in charge of its management said that 40 percent of the loan was granted in lira “which demonstrates trust of investors in the local economy.”

Celine Chidiac, Head of Marketing at Fransabank, said that this is the first cooperation between Fransabank and IFA.

The Alabadiyah Hills project spreads out on an area of 85,000 square meters, and comprises residential villas, town houses, apartments, in addition to a spa and a beauty clinic. It will be managed by Kempinski Hotels.

Sweidi said that the first phase of construction which had a total cost of $33 million and was self -financed has been already completed, and 90 percent of the villas and townhouses are sold. “Also 20 percent of properties from the second phase are already sold,” he said.

IFA provides financing facilities up to one and a half year, said Sweidi. “Prices of villas range between $2.2 million and $2.6 million while prices of townhouses range between $1.3 million and $1.9 million,” he said.

Sweidi said that sales have picked up in recent months after slowing down in light of the global financial crisis. The pickup in sales is boosted by political and economic stability, he said.

Main shareholders in IFA-Kuwait are Kuwait’s International Financial Advisors with a 56 percent stake, Kuwait’s International Finance Company with a six percent stake, Kuwait Real estate Company (KRE) with an eight percent stake, and Al Rana General Trading and Contracting Company.