Financially troubled Dubai developer Union Properties, which completed a debt restructuring earlier this year, has launched a new project valued at around 1.6 billion dirhams ($436 million), its first new launch since 2015.

The mixed-use development called Takaya will be located in Dubai Motor City, it said in a statement on Tuesday. Construction is expected to commence during Q3 2023 with the handover of units expected in Q4 2025.

Amer Khansaheb, board member and managing director at Union Properties said the launch of Takaya was a symbolic moment for Union Properties. “It underscores the ongoing success of our turnaround strategy that has enabled us to return to the market with such a unique and high-quality mixed-use real estate offering, in a premium and highly sought after area of Dubai.”

Union Properties, which began operations in 1987 and is known for building Dubai Motor City, has long struggled with debt and mismanagement.

As of H1 2022, accumulated losses were at AED 2.94 billion, accounting for over 68% of its capital. In October, the Dubai Financial Market-listed developer completed a AED595 million debt restructuring, including the repayment of AED223 million to lenders, as part of a comprehensive restructuring plan.

The company expects the restructuring to reduce financing costs and improve its cash flow generation and access to financing for future real estate projects.

Khansaheb said with the debt restructuring done, and with an attractive landbank and deep expertise in real estate development, the company is now “well positioned to capture further opportunities in the UAE’s thriving real estate market.”

Developers are rushing to cash in on Dubai’s property sector boom. Having bounced back from a slump in 2020 with the help of visa reforms and investor friendly policies, it is one of the fastest growing markets globally. According to a recent report by CBRE, the total volume of transactions in Dubai’s residential market in October 2022 climbed over 72% from the prior year, with average prices rising over 9%.

Union Properties shares jumped over 2% on market open to AED0.28 with trading volumes in the stock reaching over 12 million.