Dubai real estate developer Union Properties has revealed plans to repurchase some of its shares

The company’s board of directors recommended the buyback at a rate not exceeding 10 percent of the issued capital, a bourse filing to the Dubai Financial Market (DFM) said on Monday.

It was not immediately clear how the developer intends to finance the buyback and for how much.

The plan comes as the company managed to reduce its accumulated losses and increased its shareholder equity in 2020.

The developer recorded 200.1 million dirhams ($54 million) in net profits for 2020 versus a net loss of 224.2 million dirhams in 2019. Its total assets grew by 2 percent year-on-year to 5.99 billion dirhams.

Last October, Union Properties completed a payment of 70 million dirhams towards its largest lender. The move is part of the company’s comprehensive debt restructuring plan to improve its cash flow.

(Writing by Cleofe Maceda; editing by Seban Scaria)

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