18 października, 2022

Dubai’s Union Properties agrees to $162 mln debt restructuring plan – Reuters

DUBAI, Oct 18 (Reuters) – Dubai-listed real estate developer Union Properties (UPRO.DU) said on Tuesday it had completed a 595 million dirhams ($162.01 million) debt restructuring with lenders as part of a broader corporate turnaround strategy announced earlier this year.

The restructuring plan includes the repayment of 223 million dirhams to lenders and is expected to reduce financing costs and improve the company’s cash flow generation, the company said in a statement.

The company also expects to improve its access to financing for future real estate projects in view of the rebound in the domestic property sector post the COVID-19 pandemic.

„The strong performance and outlook for the UAE’s real estate market provides significant opportunities for Union Properties, including the potential for new real estate developments,” Amer Khansaheb, board member and managing director at Union Properties, said in the statement.

Dubai’s real estate sector has been resilient amid the rising cost of living and a weaker global economic outlook, with total transactions in September up 33.4% from a year earlier, according to a recent report by CBRE. Off-plan sales increased by more than 51% over the period.

($1 = 3.6727 UAE dirham)

Reporting by Rachna Uppal; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles.


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