During the nine months ended September 30, 2022, the Group did not enter into a sale and purchase agreement with any related party, compared to a sale and purchase agreement with a related party for the sale of investment properties with a carrying value of Dhs172.8 million (for a consideration of Dhs127.0 million, resulting in a loss of Dhs45.8 million).
The developer is taking action on multiple fronts, including debt renegotiation and claims against some former board members.
According to market sources, much will depend on what the company intends to do with its land bank or completed assets, such as Dubai Motor City. Under previous management, the company had considered the possibility of selling Motor City.
Building on the positive momentum of the first six months of 2022, Union Propertie maintained a strong growth trajectory in the third quarter is continuing to see the positive benefits of the business 'turnaround strategy' and remains confident that it will see further progress in the coming months.
Union Propertie remains focused on driving growth and achieving cost efficiencies, particularly at the subsidiary level. Looking ahead, there is cautious optimism as Union Propertie is exploring several growth options with the expectation of creating long-term value for investors.
The completion of Union Propertie's Dhs595 million debt restructuring and continued progress in streamlining the business puts it on a solid footing to pursue new growth opportunities.
With a positive outlook for the UAE real estate sector, a land bank in popular locations and an established brand known for delivering high quality communities, it is well positioned to evaluate new development opportunities that will drive Union Properties' future growth.
Union Properties' accumulated losses currently stand at Dhs2.39 billion, representing a loss to capital ratio of 68.52%. These losses are primarily the product of significant provisions. This includes a fair value loss of Dhs2.07 billion in 2017 related to investment properties
(Had) development operations, with a focus on closing existing projects and refocusing the company on its core business activities to win new projects.
