Union Properties, a Dubai-based real estate development company, has announced that it is in the final stages of a comprehensive debt restructuring process.

In a statement to Dubai Financial Market, the developer said that the restructuring agreements are expected to include various types of solutions, such as tenor date extension and reduction of interest rates.

Negotiations with the banks began earlier this year, the statement added.

Union Properties said that this move will support the company in its efforts to improve its overall financial position.

Earlier this month, the developer announced that Khalifa Hasan Ali Saleh Al Hammadi has been elected as its new chairman by acclamation at its board meeting held in the week of June 21, 2020.

Fathi Ben Abdul Sattar Ben Grira was also appointed to the vice chairman’s post by majority through secret voting, a statement from Union Properties added. The other new board members are Dahi Yousef Ahmed Abdulla Al Mansoori, Jorg Klar, Mohamed Fardan Ali Al Fardan, Darwish Abdulla Ahmed Al Ketbi and Abdul Wahab Al Halabi.

In May 2020, one of Union Properties’ subsidiaries initiated arbitration to recover claims owed on construction work that was completed approximately 10 years ago.

Though it did not name the subsidiary or the entity it is pursuing in its statement, the developer said it is seeking approximately $408m.

The developer has delivered a number of projects in the UAE including the Dubai Autodrome, Green Community, Motor City and Uptown Mirdiff.