(MENAFN) Khalid Bin Kalban, the chairman of Union Properties PJSC (UPP), the builder of Dubai's Index Tower and Dubai's second-largest developer by assets, announced plans to repay USD545 million of debt in 2011, reported Blomberg.
The repayment is an attempt to convince banks such as NDB PJSC (EMIRATES) to allow Union Properties to defer payment on another USD954 to 1090 million for five more years, Bin Kalban said. The company has been in discussions with banks for the past three months.
The chairman said the company raised the funds for this repayment from the sale of the Ritz Carlton Hotel for USD300 million and of other properties for a total of USD245. Although no potential buyers have emerged, the company is planning to sell all unsold properties as a package for an additional USD409 to 463 million. The company would also award a construction contract worth approximately USD95 million for the incomplete Marriot Courtyard and Renaissance hotels before the end of the summer.
On May 9th, Union Properties reported a 65 percent rise in profit in the first-quarter compared to the previous year. Shares have gained 18 percent since January.