Page 34 - UNION PROPERTIES GENERAL - February 2024

2/12/24, 9:31 AM Dubai’s Union Properties enters into Dh1.2 billion debt settlement with Emirates NBD, Dubailand. - Free Online Library

Dubai’s Union Properties enters into Dh1.2 billion debt

settlement with Emirates NBD, Dubailand.

Link/Page Citation

Dubai: Dubai’s listed developer Union Properties PJSC, on Friday, announced a breakthrough in its 'legacy debt'
restructuring challenges by entering into a settlement with EmiratesNBD and Dubailand for Dh1.25 billion.

Under the agreement with Dubai’s biggest bank, Union Properties will pay a settlement amount of Dh850 million to
Emirates NBD in installments within nine months of the date of executing the agreement.
“After a long journey and constructive negotiation”, Union Properties has announced a major step forward by achieving a
settlement with Dubailand for Dh400 as well.
Under the agreement, Dubailand Union Properties will pay Dh400 million in installments over a period of three years.
Furthermore, Dubailand will provide a no-objection certificate, allowing Union Properties to repurpose parts of its Motor
City master plan, including the theme park land.

“This will allow Union Properties to apply to the zoning authority for a change of usage permit. Once approved, it will
develop additional residential zones and increased GFA, thereby unlocking further value in Union Properties Motor City
master plan, resulting in increased shareholder value,” the company said in a statement of Dubai Financial Markets
(DFM).

Amer Khansaheb, Board Member and Managing Director of Union Properties PJSC said, “The recent Settlement
Agreements with Dubailand and Emirates NBD not only underscore our unwavering commitment to addressing
challenges through effective means but also highlight the paramount importance of productive cooperation within the
dynamic real estate sector.”

Khansaheb said, “Our resolve at Union Properties to surmount obstacles aligns seamlessly with our remarkable progress
in implementing our turnaround strategy and our steadfast commitment to executing our recovery plan. We appreciate the
trust and continuous support of our Shareholders.”
According to the developer, these settlements are as a monumental achievement for Union Properties Company. The
company’s new board, appointed in December 2021, was tasked with the mammoth task of a turnaround strategy and
steering the organisation back towards profitability.

The Securities and Commodities Authority (SCA), the UAE's markets regulator, filed a complaint against Union Properties'
senior executives in October 2021, accusing them of selling one of the company's property assets at a price below its real
value, forgery, abuse of authority, fraud and damage to the interests of the company.
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