Page 66 - UP PR REPORT - February 2025

Union Properties to continue cutting legacy

debt in 2025

By Pramod Kumar
February 6, 2025, 8:04 AM
Union Properties/X

A rendering of the Takaya project in Motor City. The developer is planning to launch
two new projects soon

Union Properties will continue to cut its legacy debt this year after lowering it by
nearly 40 percent since 2022.

As part of its recovery plan, the Dubai-listed developer reduced its legacy debt to
AED575 million ($156.6 million) by the end of December 2024, from AED1.47 billion
in 2022. It will repay another AED150 million by the end of Q1 2025.

The developer has lowered the margin on the three-month Eibor from 3.25 percent
to 2.75 percent thanks to growing trust among banks.

In addition, the company behind the Motor City development secured additional loan
of AED150 million from a local bank to fund new investments over the next 18
months.

These investments are forecast to generate an annual recurring income of AED40
million.

Under its debt restructuring strategy, Union Properties has lowered its financing
costs from AED114 million in 2023 to AED32 million in 2024, supporting profitability
and liquidity.

https://www.agbi.com/construction/2025/02/union-properties-to-continue-cutting-legacy-
debt-in-2025/