Property major confident of a smart comeback soon
BBN Report
DUBAI/October 26-2020: Union Properties, the leading real estate developer with a portfolio of diversified subsidiaries, has announced the successful completion of an AED70 million payment towards its largest lender, Emirates NBD.
This payment comes a part of a comprehensive debt restructuring plan, announced last August, aiming to improve the group’s cash-flow and restore its standing with the banking sector.
Union Properties said about two months ago that it had reached an agreement with Emirates NBD, major creditor of the company, for the full restructuring of its outstanding AED946 million debt with the bank.
UP said the agreement with Dubai’s largest lender would substantially improve the debt profile of the group.
As a result, Union Properties will have a significant reduction of its instalments as compared with the situation prior to this debt restructuring and better repayment terms, which will help the company manage its cash flow efficiently.
Khalifa Hasan Al Hammadi (seen in the picture) , chairman of Union Properties, had said then that restructuring outstanding debt with Emirates NBD was the number one priority for the group.
Al Hammadi said Union Properties is a strong group with a large asset base and fantastic operations.
“Despite challenging market conditions, we are honouring our financial commitments and guaranteeing our ability and willingness to pay the company’s debt in time,” Al Hammadi said.
He added that the successful implementation of the comprehensive debt restructuring has resulted in a massive reduction of the company’s financing costs by 35 per cent for the three-month period ending September 2020 compared with the same period last year.
“This achievement adds to a series of great and impressive results recently announced and we are fully dedicated to keep going forward with this positive momentum,” he said further.
