Boutique developer secures AED 45M institutional backing for mixed-use scheme in Ras Al Khaimah
A boutique property developer with three successful residential completions in Ras Al Khaimah had secured the land for their first mixed-use scheme — a 220-unit development combining residential, retail, and hospitality uses. Despite the track record and a genuinely attractive RAK location, every institutional lender they approached declined at the information memorandum stage. Dillon & Bird was brought in to find out why — and to fix it.
A good project with an incoherent story
The developer's information memorandum had been prepared internally. The financial model projected healthy returns but contained three material modelling errors that any institutional analyst would identify immediately — undermining confidence in everything that followed.
The development's mixed-use nature required the financial model to address three distinct revenue streams — residential sales, retail leasing, and a serviced apartment component — but the document treated them as a single undifferentiated cash flow.
The developer had no formal relationships with institutional capital sources. They had been cold-approaching lenders through their personal network, an approach that carries implicit reputational risk for projects of this scale.
A structured path from problem to outcome
Financial Model Rebuild
We rebuilt the financial model from first principles — separating the three revenue streams, applying market-standard assumptions for each, stress-testing against RAK market absorption rates, and correcting the three structural errors. The new model was bank-ready on Day 1.
Institutional Narrative Development
We developed a comprehensive investor narrative that contextualised the RAK market opportunity, positioned the developer's residential track record as evidence of execution capability, and addressed the mixed-use risk questions proactively.
Lender Introduction Programme
Drawing on our relationships with UAE institutional lenders and private credit funds, we ran a structured introduction programme — presenting the project to seven qualified capital sources over four weeks.
Term Sheet Negotiation
We received three term sheets and negotiated on behalf of the developer — focusing on LTV, drawdown schedule, and interest coverage covenants. The final terms improved the developer's equity return by 18% vs. the first term sheet received.
Closing Coordination
We managed the full legal and documentation process through to financial close — coordinating between the developer, lender, legal counsel, and RAK municipality.
Measurable impact — delivered on time
Full construction financing for the AED 180M GDV project secured at competitive pricing from a UAE-based institutional lender.
The final capital structure achieved a 63% improvement in the debt-to-equity ratio vs. the developer's initial assumptions.
Negotiated term improvements delivered an 18% uplift in projected equity IRR vs. the first term sheet.
Three competing term sheets — creating genuine negotiating leverage for the first time.
“We had been turned down three times. Dillon & Bird rebuilt our story from the ground up — and within four months we had three institutions competing to fund us.”
— CEO, Boutique Property Developer — Ras Al Khaimah, UAESimilar challenges. Similar results.
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