Stock Union Properties Dubai
The Union Properties turnaround plan is taking shape. Selling off 40% in Dubai Autodrome brought in much needed new funds. Image Credit: Ahmed Ramzan/Gulf News

Dubai: Union Properties has made a Dh70 million payment to Emirates NBD, the first one after the restructuring of a Dh946 million debt load deal it struck in August.

“We are honouring our financial commitments and guaranteeing our ability and willingness to pay the company's debt on time and without any delay,” said Khalifa Hassan Al Hammadi, Chairman of Union Properties. (In the first nine months of 2020, it reported a profit of Dh348.8 million after a series of losses in recent years.)

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The restructuring plan – which also brought in changes to the payment tenor – saw the developer’s financing costs drop by 35 per cent for the July to end September period from a year ago. (It was brought down to Dh31 million from Dh48 million.) The debt deal was announced as part of wider moves to improve the cashflow situation and recover from a series of losses it sustained in recent quarters.

Union Properties, which is into a three-year turnaround plan, also picked up Dh400 million from selling a 40 per cent stake in Dubai Autodrome.