Union Properties, Dubai’s third largest developer, said Tuesday it had paid back AED700m ($191m) in debt after securing AED1.1bn through the sale of the Ritz Carlton Hotel Dubai.
The property firm finalised the sale of the hotel at the Dubai International Financial Centre on November 8, the company said in a statement to the Dubai bourse.
The proceeds were used to reduce debt and complete outstanding real estate projects.
Union Properties in May said first quarter profit jumped 64 percent to AED82m ($22.32m), up from AED50m in the same period a year earlier.
The rise in profits was primarily due to the ongoing handover of properties at Union’s Index Tower and the Limestone House in Dubai International Financial Centre.
The company booked provisions worth AED65m for loss of valuation of some properties.
House prices in Dubai declined more than 60 percent from their 2008-peak amid a global economic crisis that caused lending to dry up and speculative demand to decline.
Investment bank Rasmala said in March that house prices across the UAE were set to decline a further 25-30 percent over the next two years due to a rising oversupply of property.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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