Union Properties, the Dubai developer which completed a debt restructuring earlier this year has launched a new project valued at AED1.6bn, announced on Tuesday. The previous project launched by the developer was in 2015.
Takaya will be located in Dubai Motor City with construction expected to commence in Q3 2023 and handovers expected in the fourth quarter of 2025.
“It underscores the ongoing success of our turnaround strategy that has enabled us to return to the market with such a unique and high-quality mixed-use real estate offering, in a premium and highly sought after area of Dubai,” said Amer Khansaheb, board member and managing director at Union Properties. He described Takaya as a symbolic moment for the company.
The Dubai-based property developer, known for building Dubai Motor City, began operations in 1987 and has struggled with debt and mismanagement, reports state.
The accumulated losses were at AED2.94 billion in H1 2022, accounting for over 68 percent of its capital.
In October, Arabian Business reported that Union Properties announced, the completion of a AED595 million debt restructuring with lenders as part of a wider corporate turnaround strategy, according to Reuters.
The plan in line with the corporate turnaround strategy announced earlier this year, includes repayment of AED223 million to lenders as well as, reduction of financing costs to improve the company’s cash flow generation, the company detailed in a statement to Dubai Financial Market.
The restructuring is expected to improve cash flow generation and access to financing.
“The strong performance and outlook for the UAE’s real estate market provides significant opportunities for Union Properties, including the potential for new real estate developments,” he said in the statement.
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