September 11, 2017 / 10:39 AM / 10 months ago

Dubai's Union Properties may issue sukuk to back MotorCity project

DUBAI, Sept 11 (Reuters) - Dubai’s Union Properties may issue Islamic bonds to fund construction of a new property development in the emirate worth some 8 billion dirhams ($2.2 billion), the company’s chairman said on Monday.

Union Properties will raise about 2 billion dirhams per year of financing, Nasser Butti Omeir bin Yousef said during a press conference.

The company has multiple potential sources of funding, including sukuk and conventional bonds, he added. It will take a decision on which instrument to use by the end of this year.

Union Properties has signed an agreement with the Chinese government’s China State Construction Engineering Corp to build the development, and the Chinese firm will participate in the financing, Yousef added.

The project, called MotorCity, will lead to the construction of around 18,000 units in total including residential, commercial and hospitality facilities. (Reporting by Hadeel Al Sayegh; Writing by Davide Barbuscia; Editing by Andrew Torchia)

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