Union Properties sells Motor City project for AED 700: Dubai-based developer Union Properties signed a conditional AED 700 mn sale agreement for a development in Motor City, according to a press release (pdf). Structured under a deferred payment plan, the transaction is set to fully repay what’s left of its accumulated debt after it reflects in the firm’s financials in 4Q of this year.

The agreement will wrap up a multi-year financial recovery plan that has been years in the making. Union Properties has been planning to repay all of its debt this year, after slashing its debt by more than AED 150 mn in 1Q, and reducing its legacy debt to AED 575 mn by the end of 2024 — down from AED 1.5 bn in 2022. The firm did so by divesting AED 1.3 bn in assets and securing new bank loans to support income-generating projects. Its shareholders also recently approved a 33.4% capital reduction and the use of reserves to write off its losses.

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