Union Properties Strikes AED 1.25 Billion Landmark Debt Settlement with Emirates NBD and Dubailand, Paving the Way for Motor City Revitalisation

Dubai: Union Properties PJSC, a publicly listed developer in Dubai, announced on Friday a significant development in overcoming its legacy debt restructuring hurdles by reaching a settlement with EmiratesNBD and Dubailand to the tune of AED 1.25 billion.

In terms of the settlement with Dubai’sDubai’s premier bank, Union Properties, has agreed to settle AED 850 million to Emirates NBD in installments over a nine-month period following the execution of the agreement.

Following “a lengthy journey and constructive discussions,” Union Properties also declared a substantial advancement by concluding a settlement with Dubailand amounting to Dh400 million.

As per the agreement, Union Properties will remit AED 400 million to Dubailand in installments across three years. In addition, Dubailand will issue a no-objection certificate, permitting Union Properties to redevelop sections of its Motor City master plan, which includes the land designated for a theme park.

“This facilitates Union Properties’ Property’s application to the zoning authority for a change of use permit. Upon approval, it will permit the development of additional residential areas and an increase in Gross Floor Area (GFA), thereby enhancing the value of the Union Properties Motor City master plan and, subsequently, shareholder value,” stated the company in a declaration to the Dubai Financial Markets (DFM).

Amer Khansaheb, Board Member and Managing Director of Union Properties PJSC, remarked, “The recent settlement agreements with Dubailand and Emirates NBD not only demonstrate our resolute commitment to overcoming challenges through effective strategies but also underline the critical importance of productive collaboration within the ever-evolving real estate sector.”

Khansaheb added, “Our determination at Union Properties to overcome challenges perfectly aligns with our significant progress in implementing our turnaround strategy and our unwavering dedication to executing our recovery plan. We are grateful for the trust and ongoing support of our shareholders.”