Developer still seeking finance for four projects
Dubais Union Properties has confirmed it is in discussions with banks to finance four projects in a statement to the Dubai Financial Market (DFM).
The target for the total loan is AED740m ($201m).
| The four projects | |||
|---|---|---|---|
| Project | Size | Targeted loan (AEDm) | Progress |
| Oia Residence (Motor City) | 269 units | 300 | Main contract awarded |
| Labour Camps | na | 70 | na |
| Expansion of The Market (Green Community) | Expanding from 86 units | 50 | Execution |
| The Link (Motor City) | 250,000 square feet | 320 | Final design |
| na=Not available. Source: UP | |||
The main contract for Oia Residence, worth AED235m, was awarded to China State Construction & Engineering in January.
Dubai Islamic Bank (DIB) extended AED500m of financing for the third phase of Green Community West in October 2015. The AED750m residential area is due for completion in 2017.
DIB also refinanced AED360m of Union Properties debt in 2014.
Union Properties preliminary financial results for 2015 show its net profits halved, falling from AED865m in 2014 to AED435m. Revenues fell 29.2 per cent to AED1.5bn in 2015.
Union Properties struggled to manage its huge debt burden following Dubais 2008 real estate crisis. It spent until 2013 restructuring at least AED7bn of debt, and was forced to sell off many properties, including the Dubai Ritz Carlton.
AED4bn was settled in 2010 and 2011. In 2013, AED3.1bn of this debt, with Dubais Emirates NBD and Abu Dhabi Commercial Bank, was extended until 2017, according to contemporary press reports.
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