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Union Properties executive resigns after Dh3.8bn Emirates NBD deal

The general manager of Union Properties has resigned after a tumultuous period for the Dubai developer

Khalid Rashid Al Jarwan, the Union Properties general manager, has resigned less than a week after the Dubai developer announced a deal to turn over a significant portion of its flagship projects to Emirates NBD.

He has been replaced by Ahmad Khalaf Al Marri, who will serve as the acting general manager, "granting him all authorities and responsibilities" of the former general manager, according to a statement posted on the Dubai Financial Market website.

Mr Al Marri was serving as the company's chief administrative officer.

Executives were unavailable for comment, a Union spokesman said yesterday.

Union shares jumped 5.7 per cent yesterday following the news, closing at 27.5 fils.

The stock hit an all-time low of 23.6 fils a share onTuesday, down from a high of 40.3 fils reached on August 2.

Last week Mr Al Jarwan announced a Dh3.8 billion (US$1.03bn) deal with Emirates NBD to slash the developer's Dh6.1bn debt load.

As part of the deal, the bank, Union's largest shareholder, took over Dh1.1bn in office space and residential units in the 80-storey Index Tower and Limestone House, the developer's two high-profile developments in the Dubai International Financial Centre (DIFC).

Neither company offered specifics of the deal, saying only that NBD would take a "significant" ownership stake in the two buildings. NBD also agreed to extend repayment terms on Dh2.7bn of loans to 2017, offering the developer breathing room as its seeks to recover from the downturn in the Dubai property market.

In its quarterly filing released in November, Union said Dh1.7bn in loans was due for repayment this year.

The company reported a record Dh1bn loss in the third quarter last year, after writing down the value of its property portfolio by Dh1.7bn in the first nine months of the year.

At the time the company said it was in the "final stages" to rework Dh1.4bn in loans.

 

kbrass@thenational.ae

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