x Abu Dhabi, UAESaturday 22 July 2017

Union Properties of Dubai builds on debt deal with banks

Markets Update: Union Properties announces a deal with creditors over its upcoming debt repayments, sending the stock to its highest intraday gain in nine months.

Union Properties climbed the most in nine months after reaching a debt agreement with banks, leading gains among property developers on local markets.

The Dubai-based developer rose 12.2 per cent to 26.5 fils each, at one point reaching the highest intraday gain for the shares since April.

Union Properties said it had agreed to settle Dh1.1bn owed to its largest shareholder, Emirates NBD, in exchange for a transfer of a significant stake in Index Tower and Limestone House, two of the company's highest profile real estate assets.

The developer will also reschedule a further Dh2.7bn in outstanding debts by five years.

The Dubai Financial Market General Index rose 1.2 per to 1,326.27, while the Abu Dhabi Securities Exchange General Index gained 1.6 per cent to 2,330.90, with both measures rebounding from lows reached yesterday.

Real estate-linked stocks such as Emaar Properties and Arabtec in Dubai and Abu Dhabi's Aldar Properties led the gains on the emirates' exchanges.

Asian stocks climbed in the early hours of the morning on tentative expectations that an end to the eurozone crisis may be within reach, with Greece's prime minister resuming negotiations with bondholders later today.

Japan's Nikkei 225 index rose 0.9 per cent to 8,550.58, while the Hang Seng Index gained 0.2 per cent to 19,666.40.

Oil prices increased on signs of stronger economic growth in the US and Germany. Brent futures gained 55 cents to $111.81 a barrel.