Dubai developer receives shareholder approval to extend deal by another five years
Dubai's Union Properties received shareholder approval plans to extend a AED400m ($108.9m) loan from Abu Dhabi Commercial Bank by another five years, the company said on Sunday.
The extension of the loan until August 2017 was approved at an extraordinary general meeting on April 11, Union Properties said in a statement on Sunday. No financial terms of the debt extension was provided.
Union Properties was among the many property firms in Dubai that were hit by a property market collapse in 2009-10, which saw home prices plunging by more than half and a large number of projects being put on hold. Recovery has been gradual as heavy supply still weighs on the emirate's market.
It swung to a profit of AED175.8m in 2012, compared with a massive loss of AED1.57bn a year ago.
The developer reached a AED3.8bn debt deal with largest shareholder Emirates NBD in 2012, where it transferred assets worth AED1.1bn to the bank.
Its remaining liabilities to ENBD worth AED2.7bn were also extended until 2017 as part of the debt deal.