Union Properties to decide on selling 40% stake in Dubai Autodrome for Dh400m
Developer will also likely sign off on Dh740m deal for some of its investment assets
Dubai: Union Properties has got an offer to sell a 40 per cent stake in its Dubai Autodrome, amounting to Dh400 million. A decision will be taken at the developer’s Board of Directors’ meeting called for September 29.
Sources say that the go-ahead is more or less assured, and thus will help Union Properties’ access to much needed new funding. Earlier this year, the developer – whose portfolio includes Green Community and Motor City – had mentioned interest from a leading Chinese developer.
The Board meeting will also consider the acquisition of some of UP’s existing investment properties, which is currently valued at Dh740 million. Again, a deal would be strategic to the developer’s medium-term interests. “The offer received to buy a stake in Dubai Autodrome is just another achievement that proves the position of the company and its subsidiaries… along with its high quality assets,” said Khalifa Hassan Al Hammadi, Chairman.
Dh1billion
A series of good news
Union Properties recently confirmed that it has managed to renegotiate its debt payments with Emirates NBD, the biggest lender on its books, and that it was making progress at securing similar terms with others as well. The deal with Emirates NBD is for Dh946 million.
Earlier, it had announced progress was being made on a turnaround plan as well as launch a new project – expected to be sometime next year – in Dubai. The turnaround blueprint will be played out over a three-year period.