Union Properties enters ‘final stages of’ debt restructuring process
The developer, which recently appointed a new chairman, said that it has begun negotiations with the banks during the current year
Dubai Financial Market-listed real estate developer, Union Properties, known for projects including Dubai Motor City, has entered the ‘final stages of the comprehensive debt restructuring process’.
The developer, which recently announced the appointment of Khalifa Hasan Ali Saleh Al Hammadi as its chairman, said that it has begun negotiations with the banks during the current year.
In a stock market missive, Union Properties said: “This move will support the company to improve its overall financial position. The restructuring agreements are expected to include various types of solutions such as tenor date extension and reduction of interest rates.”
Earlier this year, the developer reported a net loss of $61m (AED224m) for the year ended on 31 December 2019, with accumulated losses having totalled to $583.2m (AED2.1bn) in the same period.
Meanwhile, the group revenue as of 31 December 2019 reached $115.3m (AED423.4m) gliding 15.5% compared to $136.4m (AED501m) in the same period the previous year.
Revealing reasons for the accumulated losses, Union Properties said at that time: “The accumulated losses mainly contributed by the fair value loss of $565.2m (AED2.076bn) related to investment properties recorded in the year 2017.”