UP may issue sukuk to finance its Motor City project

UP may issue sukuk to finance its Motor City project
The Chinese firm will contribute to financing the project, UP’s top official told reporters at the press conference.
UPP UPP -0.37% 0.81 -0.00

By: Amr Adel

Dubai - Mubasher: Union Properties’ (UP) chairman Nasser Butti Omeir bin Yousef said on Monday that his company may issue sukuk to finance the construction of its AED 8 billion new property development Motor City.

 “The company has multiple potential sources of funding, including sukuk and conventional bonds. It will take a decision on which instrument to use by the end of this year”, added the chairman during a press conference held at Cityscape Global 2017 in Dubai.

Project investment will be carried out at AED 2 billion per year over four years, he said.

Earlier on Monday, UP announced signing a deal with Chinese state-owned company China State Construction Engineering Corp to build the MotorCity project.

The Chinese firm will contribute to financing the project, UP’s top official told reporters at the press conference.

UP is set to begin project construction in the first quarter of 2018, bin Yousef noted, adding that the project is set to be completed by 2022.

Translated by: Muhammed AbdulWakeel

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Source: Mubasher Exclusive

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