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)
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