Union Properties achieved 816 million dirhams in land sales during the first quarter

Union Properties recorded strong performance in terms of cash flows and asset sales during the first quarter of 2024. 

According to a disclosure to the Dubai Financial Market today, Monday, the company was able, during the aforementioned period, to sell plots of land worth 816 million dirhams, which contributed to using the proceeds from the sale of the lands to pay the amount of 290 million dirhams to its creditors.

The company indicated that it intends to pay 250 million dirhams during the second quarter of 2024, to continue achieving qualitative progress in the debt restructuring plan agreed upon with local banks.

According to the disclosure, this step constitutes an important milestone within the strategic recovery plan of Union Properties, which began in the first quarter of 2022 and was strengthened in the last quarter of last year. 

Debt restructuring will allow for deleveraging, reducing financing costs, and enhancing the company's profitability and cash flows. Improving the budget also reflects positively on the company’s ability to obtain additional financing for future real estate projects and explore new opportunities to enhance value.

As part of its commitment to reducing cumulative losses, Union Real Estate Company and its companies redoubled their efforts to restructure outstanding debts and reduce the cost of financing. These efforts include a strategic asset diversification plan, the beginning of which dates back to fiscal year 2022 when it was presented to shareholders as part of the comprehensive recovery plan.

The company confirmed that the proceeds generated from the sale of financing assets provide the necessary financing to implement debt repayment agreements, and adherence to the agreement reached with “Dubailand” in the year 2023, which allows Al-Ittihad Properties to modify the original use of the lands and change the total floor area, paving the way for achieving... Making optimal use of these lands to meet market demand. This strategic step also allows the company to benefit from development opportunities within these major real estate projects during the next five years.