Union Properties announces completion of $162mn debt restructure
The developer’s management team remains focused on improving the efficiency of the business and driving cost synergies across its subsidiaries, it noted
Union Properties has announced the successful completion of a US $162mn debt restructuring, which includes the repayment of $60.7mn to lenders, as part of a comprehensive restructuring plan agreed by all parties.
According to a statement from Union Properties, the restructuring marks a major milestone in the developer’s turnaround strategy, which was announced during the first quarter of 2022. Following the restructuring, the developer will benefit from significantly improved profitability and cash flow generation, as the agreed plan effectively reduces financing costs.
Additionally, the strengthened balance sheet means the company will be able to raise additional financing for future real estate projects, while also enabling it to consider new value creation opportunities.
In September 2021, the developer broke ground on the first phase of a new development in Motor City.
Amer Khansaheb, Board Member and Managing Director of Union Properties, commented: “The successful completion of our debt restructuring process is an important milestone in Union Properties’ turnaround strategy, placing us on a firm foundation to drive future growth and value creation for our shareholders. With a bolstered balance sheet and improved free cash flows, we are now in a strong position to leverage our deep expertise, reputation, and highly sought-after land bank locations.
“The strong performance and outlook for the UAE’s real estate market provides significant opportunities for Union Properties, including the potential for new real estate developments.”
He added that Union Properties’ management remains focused on improving the efficiency of the business and driving cost synergies across its subsidiaries, and is confident in its debt servicing abilities going forward.
In October 2021, the Dubai Autodrome announced the completion of its $4.49mn Business Park Phase 2 project.
The strong brand of the group and its subsidiaries is being leveraged to accelerate growth and capture emerging opportunities created by the positive momentum in the UAE’s economy and real estate market. Union Properties also continues to focus on driving improvements in its governance and internal controls as it moves forward in its turnaround strategy, the company concluded.
In August 2022, Union Properties said it saw a net profit for Q2 2022 after healthy performance from its subsidiaries.