Dubai –  Union Properties recorded robust asset sales and cash flow generation during the first quarter (Q1) of 2024, according to a press release.

During the three-month period that ended on 31 March 2024, the company successfully closed AED 816 million in plot sales and used the proceeds to repay AED 290 million to its lenders.

The DFM-listed company is set to repay an additional AED 250 million in Q2-24, marking a significant milestone in its debt restructuring plan agreed with local banks.

The restructuring aims to lower the financing costs and deleverage Union Properties’ balance sheet for improved profitability and enhanced cash flow generation.

In line with its commitment to reducing the accumulated losses, the company and its subsidiaries boosted efforts to restructure the outstanding debt and reduce the finance cost.

Amer Khansaheb, Managing Director of Union Properties, commented: “We have witnessed significant improvement on the demand for company-owned plots in Motor City, leading to increased cash flow during Q1-24.”

“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 to pursue strategic growth opportunities and expand our market presence with confidence and agility,” Khansaheb added.

He underlined: “This milestone marks a significant achievement after the successful conclusion of our debt restructuring, laying a sturdy foundation for propelling growth and enriching shareholder value.”

The official stated: “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 in the near future.”

In Q4-23, Union Properties incurred accumulated losses totalling AED 2.10 billion, which represented 49.08% of the capital.

Last year, the DFM-listed firm registered net profits valued at AED 811 million.

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