Union Properties restructures AED 595m debt

Dubai – Mubasher: Union Properties has successfully completed an AED 595 million debt restructuring, including the repayment of AED 223 million to lenders, according to a press release.

The restructuring plan comes in line with the property developer’s turnaround strategy which was announced in the first quarter (Q1) of 2022.

Following the restructuring, the DFM-listed firm will benefit from enhanced profitability and cash flow generation as the agreed plan effectively eliminates financing costs.

Moreover, the solid balance sheet of Union Properties will raise additional financing for future property developments and enable the firm to explore new opportunities.

Amer Khansaheb, Board Member and Managing Director of Union Properties, said: “The successful completion of our debt restructuring process is an important milestone in Union Properties turnaround strategy, placing us on a firm foundation to drive future growth and value creation for our shareholders.”

Khansaheb added: “With a bolstered balance sheet and improved free cash flows, we are now in a strong position to leverage our deep expertise, reputation, and highly sought-after land bank locations.”

During the first half (H1) of 2022, the UAE-based company turned to net losses worth AED 12.19 million, against net profits of AED 32.38 million in the year-ago period.

Mubasher Contribution Time: 18-Oct-2022 20:46 (GMT)
Mubasher Last Update Time: 18-Oct-2022 20:48 (GMT)