Union Properties paid 70 million dirhams in favor of its largest creditor.
According to Arabiya Net, this step comes as a push within the implementation of a comprehensive debt restructuring plan announced last August with the aim of improving the group's cash flows and enhancing its position and credit confidence in the sector. Banker. P>
Khalifa Hassan Al Hammadi, Chairman of the Board of Directors, said: “Union Properties is a strong group with a large asset base and impressive operations. Despite the difficult market conditions, we respect our financial obligations and guarantee our ability and willingness to pay off the company's debt in a timely manner and without any delay.
Al-Hammadi added: The successful implementation of the comprehensive debt restructuring program resulted in a significant reduction in financing costs by 35% for the three-month period ending in September 2020 compared to the same period. Last year, this achievement adds to the recently announced series of impressive results and we are fully committed to continuing to push forward with this positive momentum.
The Union Real Estate Company had previously revealed that it is working on debt restructuring and reducing costs to face the recession in the real estate market in Dubai.
Fathi Bin Quraira, vice chairman of the company’s board, said during an interview with Bloomberg: “We focus on restructuring our budget, and all our efforts will be directed towards reducing our accumulated losses from the past , Noting that the company restructured 946 million dirhams ($ 258 million) in debt last August.
The Union Real Estate Company turned to profit in the third quarter of this year, to achieve profits of 509 million dirhams, after incurring losses of 82 million dirhams in the same period last year .
This comes despite a 15% drop in quarterly revenues to 90 million dirhams.
The company's financial statements showed that it had recorded profits from the revaluation of real estate investments worth 822 million dirhams.
As for the past nine months, the company recorded profits of 349 million dirhams, compared to losses of 164 million dirhams in the same period of the previous year. >