Union properties company is working to restructure debt and reduce costs to face the recession in the Dubai real estate market. The Dubai real estate market, which has been declining for most of the past decade, has been hit by the Coronavirus crisis.
Union properties said in a statement that the Dubai real estate developer completed the payment of 70 million Dirhams ($ 19.06 million) with its largest bank as part of the debt restructuring plan to improve the group’s cash flow and restore its standing with the banking sector.
Fathi Bin Quraira, Vice Chairman of the company’s Board of Directors, said that the company is focusing on restructuring its budget, and all its efforts will be targeted to reducing its losses accumulated in the past.
Khalifa Hassan Al Hammadi, Chairman of the Board of Directors of Union properties, said: “Despite the difficult market conditions, we respect our financial commitments and ensure our ability and willingness to pay the company’s debts on time and without any delay.” He said the restructuring plan resulted in a 35% reduction in financing costs year on year in the three months ending in September.
He added: “We have many indications that promise continued momentum, as we recently received an offer to acquire a stake in our subsidiary Dubai Autodrome, which will positively impact on our future performance upon completion of the deal, which we expect to take place in the fourth quarter of this year or the first quarter of the next year”.
Al-Hammadi added: “We emphasize the promising opportunities that we will achieve for the shareholders of the company, despite the exceptional circumstances that the world is going through in general due to the Corona pandemic, but we made profits in the third quarter that compensated for all our losses before 2017 and to return the company to profitability again. We hope the same strategy continues. “