Dubai developer Union Properties is in talks to obtain a loan of up to $123 million to fund a 271-unit project in the UAE emirate, a senior executive said on Thursday.

The company, Dubai's fourth-largest listed real estate firm by market value, will also launch a tender for the construction contract of its Oia residential development next month, Ahmad Al Marri, Union Properties general manager told Reuters.

He predicted this would be awarded in January or February 2016.

Union Properties is in talks with a UAE bank to borrow up to Dh450 million ($123 million) to fund the building cost of Oia, said Marri. He declined to identify the lender.

"This is still under negotiation -- we've not yet reached an agreement," he said. "We will maybe reduce the amount because if we're starting to sell off-plan that will cover part of the construction costs."

Off-plan sales are of property units that have yet to be built. Sales will likely begin in the second quarter of 2016, said Marri.

The loan is likely to be signed in mid-2016, while the Oia project will be finished in 2018, Marri added. – Reuters