Developer issues statement following inquiries from group of shareholders, says has no relationship with Abraaj
Union Properties said on Wednesday that it has no exposure to projects of funds of troubled Dubai buyout firm Abraaj.
The Dubai-based developer said in a filing to Dubai Financial Market that it has received a number of inquiries by a group of shareholders regarding the extent of the exposure.
In a statement, Union Properties said: "The board of directors would like to assure shareholders that Union Properties and its subsidiaries do not have any investments in Abraaj or any of its projects or funds and there is no relationship with the company in this regard."
Air Arabia last week said it has an overall exposure of $336 million to fund portfolios and short-term investments managed by the troubled private equity firm.
Abraaj, the Dubai-based private equity firm founded by Pakistani financier Arif Naqvi, filed for a court-supervised restructuring earlier this month after investors accused the company of mismanaging their money and creditors pressed for liquidation.
The downfall of what was once one of the most influential private equity firms in the Gulf has sent shock waves through the region’s investment professionals, who are worried that money will become harder to raise and deals more difficult to complete as Abraaj struggles for survival.