Union Properties agrees $98mn refinancing deal
Agreement reached with Dubai Islamic Bank to assist growth plans
Union Properties has signed a AED360mn ($98mn) refinancing deal with Dubai Islamic Bank (DIB).
The funding is to assist the property developer’s growth plans, having repaid AED7bn ($1.9bn) worth of legacy bank debt.
The agreement was signed by Dr Adnan Chilwan, CEO of Dubai Islamic Bank, and Ahmed Al Marri, general manager of Union Properties (UP).
Dr. Chilwan said: "The real estate sector in the UAE has rebounded strongly on the back of the economy's core fundamentals. The current and planned infrastructure of Dubai and the UAE positions the country amongst the most attractive markets in the world for business growth and prosperity.
“The expatriate population has seen a significant rise over the recent past as the nation relentlessly progresses towards establishing itself as the hub for regional and global names.
“With key regulations in place and optimum enforcement of the same by relevant authorities, the industry is now on a solid and sustainable growth path."
Real estate transactions in Dubai have increased by around 50% over the past year - excluding remortgages and donations - according to Dubai's Real Estate Regulatory Agency.
Al Marri added: "Over the past few years, Union Properties has focused on strengthening its capital position by investing in its core fundamentals and repaying its legacy debt. As we have now successfully completed all these payments, we are well placed to move forward with our new growth strategy that is backed by our positive financial performances."
Mr. Naveed Ali, chief of Corporate Banking at DIP, said: "Given UP's strong financial performance this year, the repayment of all previous debt, as well as the growth in the real estate sector, we believe this deal to be another successful step in establishing a sustainable trend in the real estate sector."