Dubai developer pays off $19m debt to largest lender

Dubai developer pays off $19m debt to largest lender

Dubai-based developer Union Properties on Monday announced the successful completion of a AED70 million ($19 million) payment towards its largest lender.

This payment comes as part of a comprehensive debt restructuring  plan,  announced in August, aiming to improve the company's cash-flow and restore its standing with the banking sector.

Union Properties says it is restructuring debt and trimming costs as it looks to launch a new mixed-use project in Dubai

Khalifa Hassan Al Hammadi, chairman, said: “Union Properties is a strong group with a large asset base and fantastic operations. Despite challenging market conditions, we are honouring our financial commitments and guaranteeing our ability and willingness to pay the company's debt on time and without any delay."

He added that the debt restructuring has resulted in a reduction of financing costs by 35 percent