Union Properties inks Dh946m debt deal with Emirates NBD
Dubai's developer Union Properties, which is set for a major three-year turnaround plan, announced on Monday that it reached an agreement with Emirates NBD for the full restructuring of its outstanding Dh946 million debt with the bank.
The developer of some of the landmark properties in Dubai said the agreement with Dubai's largest lender would substantially improve the debt profile of the group. "As a result, Union Properties will have a significant reduction of its installments as compared to the situation prior to this debt restructuring and better repayment terms which will improve the cash flow position of the company," the developer said in a statement.
Khalifa Hasan Al Hammadi, chairman of Union Properties, said the restructuring outstanding debt with Emirates NBD was the number one priority for the group.
"With better cash flow and the support of our main creditor, we can from this day exclusively focus on the development of our activities and projects. This is a strong sign of confidence from our banking partner and an important milestone for our group. We have efficiently dealt with legacy issues and are now fully geared for a new growth chapter in our history, which will improve our commitment to the banks and enhance the confidence of our shareholders," said Al Hammadi.
The developer recently unveiled a three-year plan to turn around its fortunes after several years of underperformance and mounting losses.
The blueprint envisages the launch of a new project, Motor City Hills, which will extend to 2.9 million square feet of gross floor area. The project, comprising 195 villas, 490 townhouses and six commercial plots, is adjacent to the Dubai Autodrome.
"We once steered the real estate market in the UAE, and we are looking to take our rightful place to pioneer the industry once again with products suitable for all customer and investor categories," said Al Hammadi. He said the group would be introducing for the first time villa and townhouse plots in one of the prime locations on Shaikh Mohammad Bin Zayed Road to meet the growing demand for plots to build personalised house designs.
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