Dubai developer Union Properties agrees Dh290m loan for Motor City project

Above, a rendering of the Oia Residence project of Union Properties at Motor City in Dubai. Oia Residence will consist of 271 simplex and duplex apartments. Courtesy Union Properties

The Dubai developer Union Properties has agreed with two banks on a Dh290 million loan to build its Dh450m Oia Resi­dences project in Dubai’s Motor City.

Union Properties said that it had adopted a special resolution at its general assembly to enable the company to enter into the financing agreement with RAKBank and Ajman Bank.

The Dubai-listed property company said that at a company general assembly meeting on Thursday, shareholders voted to approve the six-year loan.

At the same time, the company also voted to change its articles of association to authorise its directors to enter into loans for periods of more than three years.

In May, Union Properties signed a Dh235m construction contract to appoint China State Construction Engineering’s Middle East arm to build the 269-apartment Oia Residences project.

Work on the Greek-inspired complex, which was planned by AK Design, is scheduled to be completed by the end of next year.

Union Properties was hit hard by the global financial crisis in 2008. After 2010, to shore up its cash balance, the developer sold some of its key assets such as the Ritz-Carlton Hotel and substantial stakes in Limestone House and Index Tower to its key shareholder, Emirates NBD.

Union Property shares remained virtually unchanged, falling 0.1 per cent in trading to stand at 73 fils.

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