2012-01-19

Real estate major transfers Dh1.1b of assets to bank

Reuters

Published: 00:00 January 19, 2012

Dubai: Dubai's Union Properties has reached a Dh3.8 billion debt deal with major shareholder

Emirates NBD, the developer's chief executive told the Al Bayan newspaper yesterday.

The real estate firm will transfer assets worth Dh1.1 billion to the bank, Dubai's largest by

market capitalisation, which will now own a significant percentage of two developments in

Dubai's financial district, Khalid Bin Kalban said.

Union Properties' remaining liabilities to ENBD, worth Dh2.7 billion, would be extended until

2017, the CEO added, although he declined to comment on the interest rate the company would

pay on the revised debt.

Like many real estate firms in Dubai, Union Properties has been hit by the slump in the property

sector which has seen prices fall by more than half and large numbers of projects cancelled or

put on hold.

Union Properties' third-quarter net loss more than doubled as it booked additional provisions

amid a sharp drop in asset valuations. In June last year, the developer said it would repay Dh2

billion in 2011 and was in the process of renegotiating terms on its other obligations to extend

the tenor.

Emirates NBD is the largest shareholder in Union Properties, owning a 47.6 per cent stake,

according to the Dubai Financial Market.

Union Properties' shares are down 95 per cent from a 2008 peak and were flat at 0610 GMT

yesterday.

UP reschedules Dh2.7b debt to 2017

Bloomberg

19 January 2012, 9:17 PM

DUBAI - Union Properties rescheduled repayment of Dh2.7 billion of debt owed to Emirates NBD until 2017, the

developer's Chairman Khalid Jassim bin Kalban said on Wednesday.

The company will pay a 'high interest' of less than five per cent, he said, without being specific. He

confirmed that the Union Properties settled Dh1.1 billion in debt to Emirates NBD in exchange for homes

and offices in projects including Limestone and The Index towers.

Wednesday.

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