Union Properties to repay $545m debt
Dubai, June 8, 2011
Indebted developer Union Properties will repay 2 billion dirhams ($544.5 million) of debt this year and will seek to renegotiate terms for its other loans with banks, a spokesman said.
The third largest developer in Dubai also repaid debt worth 2 billion dirhams in 2010, its chairman Khalid Bin Kalban had stated at the company's annual general meeting .
The company hopes the repayment will help to push maturities on the loans and renegotiate interest rates with lenders, which includes Dubai's top bank Emirates NBD.
Union Properties will repay part of the debt with the 1.1 billion dirhams it raised from the sale of the Ritz Carlton hotel in Dubai last year. The remaining will be raised from the sale of properties, the developer said.
Dubai's property sector was hit hard by a downturn, with billions of dollars worth of projects put on hold or cancelled, while prices slumped as much as 60 percent. - Reuters