Dubai-based Union Properties reduced its legacy debt to AED 575 mn by the end of 2024, down from AED 1.5 bn in 2022, according to a DFM disclosure (pdf). The company divested some AED 1.3 bn assets, which funded debt settlements and new real estate projects, alongside an AED 82 mn decline in financing costs in 2024. The developer aims to further lower its debt by AED 150 mn in 1Q 2025.

ALSO- The company secured AED 150 mn in new bank loans, the disclosure said, without disclosing the name of the banks offering them loans. The capital injection will be used to support strategic investments over the next 18 months, with a projected annual recurring income of AED 40 mn. As part of its growth strategy, the developer is set to launch two new mixed-use projects in Dubai, and retains 10 mn sq ft of gross floor area earmarked for future development.

REMEMBER- Union Properties, one of several developers still navigating the aftermath of Dubai’s 2009 property market correction, has long been managing significant debt repayments to Emirates NBD. The company restructured USD 257.5 mn in debt in 2020 and reached a settlement agreement in February 2024, repaying AED 850 mn within nine months. In February, the Motor City developer also finalized a settlement agreement with Dubailand, securing a no-objection certificate to repurpose its land in Motor City in exchange for a payment of AED 400 mn paid in installments over three years.

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