Developer will also acquire an existing investment property in Business Bay for $68mn
Union Properties, the Dubai-based property developer, has announced that it has won approval from its board of directors to sell a 40% stake in its subsidiary Dubai Autodrome’s share capital for $108.8 million.
Dubai Autodrome is the UAE’s first fully integrated multi-purpose motorsport and entertainment facility.
In a statement to the Dubai Financial Market, the developer said that the board also voted unanimously to acquire an existing investment property in the Business Bay area of Dubai, worth $68 million, during a session held on September 29.
They will continue to evaluate and negotiate the acquisition of various other real estate assets in the UAE, it continued.
Union Properties has long history of delivering landmark projects, having completed a wide range of residential and commercial projects projects, such as MotorCity, Dubai Autodrome, Green Community and Uptown MotorCity, Green Community East and West at Dubai Investment Park, Uptown Mirdiff, and Limestone House and Index Tower in the DIFC area.
In August this year, the developer announced that had successfully reached an agreement with Emirates NBD for the full restructuring of its outstanding $258 million debt with the bank, along with payment of the initial amount as per the new terms.
As a result of the agreement, the developer was able to see a significant reduction of its instalments as compared to the situation prior to the debt restructuring. It added that the better payment terms would help improve the cash flow position of the company.