Union Properties negotiates with banks to settle its billions of debt
19/02/2013
As the property developers in Dubai were affected by the Global Economic Crisis that began in mid-2008, some of them could no longer continue their property projects; while others still tried to be strong enough in order to overcome the negative challenges of the said crisis. In fact, the mere reason of why the construction works for their projects were halted was absolutely due to lack of financial stability or funds.
Union Properties PJSC, one of the leading Real Estate Investment Developers in the UAE, was also hardly affected by economic downturn. Nevertheless, it has gradually moved on because of determination to fulfill its commitments with the company’s investors in particular. So, little by little, it has experienced a positive growth, especially in terms of profit. Indeed, if compared to the previous three consecutive years since the onset of financial crisis, the company has gained a total of AED170 million in 2012 as well as it has already paid the interest of its billions of debt around AED150 million in the same period.
Now, it is in talks with involved bank creditors such as Emirates NBD PJSC and Abu Dhabi Commercial Bank PJSC so as to settle its AED 2.2 billion debt, in which the company is offering an option to sale some of its property assets that will be used only for repaying some of the remaining balance of its debt.
Moreover, as part of the company’s strategies, it is currently planning to reduce the costs, including its liabilities to AED400 million instead and spending around AED60 million for its plan to expand the company’s retail outlet in Mirdif. It will add a total of 200, 000 square feet to that existing property. Then, it is also planning to build partially hundreds of villas in its Green Community Development as well as to release some land plots for sale in MotorCity.
Union Properties PJSC, one of the leading Real Estate Investment Developers in the UAE, was also hardly affected by economic downturn. Nevertheless, it has gradually moved on because of determination to fulfill its commitments with the company’s investors in particular. So, little by little, it has experienced a positive growth, especially in terms of profit. Indeed, if compared to the previous three consecutive years since the onset of financial crisis, the company has gained a total of AED170 million in 2012 as well as it has already paid the interest of its billions of debt around AED150 million in the same period.
Now, it is in talks with involved bank creditors such as Emirates NBD PJSC and Abu Dhabi Commercial Bank PJSC so as to settle its AED 2.2 billion debt, in which the company is offering an option to sale some of its property assets that will be used only for repaying some of the remaining balance of its debt.
Moreover, as part of the company’s strategies, it is currently planning to reduce the costs, including its liabilities to AED400 million instead and spending around AED60 million for its plan to expand the company’s retail outlet in Mirdif. It will add a total of 200, 000 square feet to that existing property. Then, it is also planning to build partially hundreds of villas in its Green Community Development as well as to release some land plots for sale in MotorCity.
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