The restructuring plan, which was announced during the first quarter of this year, will significantly improve profitability and cash flows to the company after it is completed, according to a statement released by the Real Estate Union on Tuesday. It will also significantly lower the cost of financing.
According to the company’s statement, which was listed on the Dubai Financial Market, the plan will strengthen the company’s public budget, enabling it to get more credit facilities to fund upcoming real estate development projects.
Amer Khanseb, managing director of Al-Ittihad Real Estate Company and a member of the company’s board of directors, stated that the conclusion of the debt restructuring procedure is a crucial step in the Union Real Estate Plan for Strategic Transformation.
According to him, the company is currently in a strong position that ensures significant opportunities within the potential for future expansion of the UAE real estate market, and the Real Estate Union permits the capacity to engage in new real estate development projects.
As part of the procedures for carrying out the complete restructuring plan, the management of Al-Ittihad Real Estate Company reportedly concentrates on enhancing company effectiveness and cutting expenses at the level of its subsidiaries.
The Real Estate Union reports that loans totaling $ 162 million have been restructured.
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