Limitless will pay Dh2.07 billion to banks and trade creditors after selling part of its land bank in Saudi Arabia, chairman of the Dubai-based developer told reporters during a Press conference on Monday.
Limitless will repay a Dh1.9 billion in bank debt, including an early payment of Dh411 million, and a further Dh176 million to trade creditors, Ali Rashed Lootah informed.
The repayment to banks represents 42 per cent of Limitless’ outstanding bank debt of Dh4.45 billion. The repayment reflects the company’s ability to execute its business by achieving sales, including the sale of part of its land bank in Saudi Arabia for Dh2.07 billion.
The company sold half its 151 million square feet of land in Riyadh to Saudi Real Estate Company, according to the chairman. Limitless is negotiating with its banks to agree on new terms and conditions for the repayment of the remaining debt and requires the banks to agree to an extension of period to December 2018.
With almost 90 per cent of the banks agreeing to the revised terms, Limitless is confident that the remaining 10 per cent of the banks will soon agree to the revised proposal to enable Limitless to successfully conclude on these negotiations.
“The sale of land in Dubai will be the source for the rest of the repayments,” the chairman said. “In 2018, Limitless will be debt free and hopefully will be making profit before then,” he added.
The company is holding a meeting with creditors on Tuesday to discuss the proposal, Lootah said. The money will be paid to them after all the banks agree to the deal, he added. Lootah said: “This is very positive news for Limitless. We are honouring our commitment to creditors and outperforming the current restructuring plan with an early repayment, six months ahead of time.”
Residential property prices in the Emirate are likely to fall by 10 to 20 per cent in 2015 because of subdued demand, slower economic activity and downbeat investor sentiment, credit rating agency Standard & Poor’s said in a report this month.
The Dubai-developer is focusing on its 200-hectare Downtown Jebel Ali project, close to the new site for the Dubai Expo in 2020. Limitless also plans to develop its remaining land bank in Saudi Arabia, and is continuing with its project in Russia, the chairman informed.
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