Union Properties PJSC (UPP), Dubai’s second-biggest developer by assets, plans to repay 2 billion dirhams ($545 million) of debt this year to cut interest costs and win bank support to restructure other loans.
The builder of Dubai’s Index Tower is seeking to convince banks including Emirates NBD PJSC (EMIRATES) to delay repayment on an additional 3.5 billion dirhams to 4 billion dirhams for five years, Chairman Khalid Bin Kalban said in a telephone interview from Frankfurt yesterday. Union Properties also repaid 2 billion dirhams in 2010, he said.
“We are pre-paying so we can sit and negotiate with the banks on restructuring some of the debt that will be left,” Bin Kalban said. The company is seeking to pay interest only and delay the principle repayment until 2016.
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