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Union Properties to repay $263m debt in 2024

By Pramod Kumar
A view of the Motor City community. Union Properties will repay AED250m to lenders in the second quarter of 2024 Union Properties
A view of the Motor City community. Union Properties will repay AED250m to lenders in the second quarter of 2024

Union Properties plans to repay AED966 million ($263 million) to lenders in 2024 as part of its debt restructuring plan.

The developer, which trades on the Dubai Financial Market, has repaid AED290 million ($78.96 million) worth of debts as a result of AED816 million generated from plot sales in the first quarter of 2024. 

The company plans to repay an additional AED250 million in the second quarter of 2024. 

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To minimise accumulated losses, the developer and its subsidiaries have undertaken an asset divestment strategy, initially presented to shareholders in 2022, to meet debt settlement agreements reached in 2023. 

The agreements allow Union Properties to change the original land usage for a plot in Dubailand in line with market demand over the next five years. 

“We have witnessed significant improvement in the demand for company-owned plots in Motor City, leading to increased cash flow during the first quarter of 2024,” said managing director Amer Khansaheb.

The strong performance and outlook for the UAE’s real estate market provide significant opportunities, including the potential for new real estate developments, he added.

Last month the developer sold more than AED500 million worth of land to address debt levels.

Union Properties announced a net profit of AED811 million for 2023 and plans to spend AED5 billion on new projects.

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