Dubai developer Union Properties pays off $19mln of debt

Developer says payment is part of debt restructuring announced in August

  
A trader talks on the phone during the opening of the Dubai stock market June 26, 2016. Image for illustrative purpose

A trader talks on the phone during the opening of the Dubai stock market June 26, 2016. Image for illustrative purpose

REUTERS/Ahmed Jadallah

Dubai real estate developer Union Properties (UPP) has paid off AED 70 million ($19 million) of debt from its largest lender as part of a comprehensive debt restructuring programme.

In a statement to Dubai Financial Market (DFM), the joint stock company said the debt pay off would improve its cash-flow and its standing with the banking sector.

Khalifa Hassan Al Hammadi, UPP’s chairman of the board of directors, said: “Despite challenging market conditions, we are honouring our financial commitments and guaranteeing our ability and willingness to pay the company's debt on time and without any delay.”

He added that debt restructuring has helped reduce financing costs by 35 percent for the three-month period ending September 2020 year-on-year.

In financial reports for the third quarter of 2020, UPP announced profits of AED 509 million ($139 million), up from a loss of AED 81.5 million ($22 million) for the previous year.

The company announced last month that it had agreed to sell a 40 percent stake in flagship development Dubai Autodrome for $109 million.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

(imogen.lillywhite@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Equities