Union Properties pays $19 million towards debt restructuring

DUBAI (Reuters) - Dubai real estate developer Union Properties UPRO.DU has completed a payment of 70 million dirhams ($19.06 million) towards its largest lender as part of a debt restructuring plan, it said on Monday.

The restructuring plan, reached in August with its main lender Emirates NBD ENBD.DU to restructure its outstanding debt of 946 million dirhams, aims to "improve the Group's cash-flow and restore its standing with the banking sector," the company said in a statement.

Dubai’s real estate market, which has been slowing for most of the past decade, was further hurt by the coronavirus crisis.

“Despite challenging market conditions, we are honoring

our financial commitments and guaranteeing our ability and willingness to pay the company’s debt on time and without any delay,” said Khalifa Hassan Al Hammadi, Union’s chairman.

He said the restructuring plan resulted in a 35% cut in financing costs year-on-year in the three-month period ending in September.

Reporting by Yousef Saba; Editing by Kim Coghill