Dubai Parks operator takes Dhs245m loan from shareholder Meraas

DXB Entertainments (DXBE), the owner of Dubai Parks and Resorts, has taken a Dhs245m subordinated loan from its majority shareholder Meraas, it announced on Wednesday.

The loan will take the form of an interest bearing unsecured subordinated shareholder loan with no fixed maturity, a statement said.

It will be used to fund operational expenses and debt repayments and will be drawn down immediately.

DXBE is currently reviewing its ongoing financing requirements, the statement added.

Mohamed Almulla, CEO, DXB Entertainments, said: “Meraas has been a great supporter of our business. This loan will enable the business to execute on its strategy which will generate value for its shareholders over the long-term.”

DXBE unveiled a new strategy last month after announcing an EBITDA loss for the first six months of 2017 at Dhs247m.

The company said it is re-organising its business into three new divisions including: theme parks; family entertainment centres; and retail and hospitality.

DXBE has already entered into a management agreement with Meraas to manage its leisure and entertainment offerings including Hub Zero, Splash Pad, The Green Planet, Mattel Play Town and Roxy Cinemas.

It also intends to seek further opportunities to manage complementary leisure and entertainment offerings in the UAE, the company said.

DXBE has also restructured its senior management in recent months, hiring and firing senior executives as part of the process.

Read more: Dubai Parks operator shakes up senior management as it unveils new strategy

Also in August, the company confirmed that Dubai Parks and Resorts is set to soon open its new Lionsgate zone at its Hollywood-themed Motiongate park, although the exact date was not revealed.

Meanwhile, the theme park complex has also slashed prices for UAE residents in a bid to boost lagging footfall.

Dubai Parks and Resorts recorded over one million visits during the first six months of the year.

Read more: Dubai Parks to open new attractions, cuts ticket prices for UAE residents