Union Properties Sells Lands Worth Over $136 Million

Union Properties, one of Dubai’s oldest property developers, on Monday said that it has successfully sold over $136 million worth of lands, marking a significant milestone in the company’s turnaround strategy.

This achievement highlights Union Properties’ strategic vision, robust market positioning and commitment to maximising shareholder value, the company said in a filing with Dubai Financial Market (DFM) in the morning.

Leveraging its deep industry expertise and market insights, the company has capitalised on productive opportunities in the real estate market to achieve this milestone. The company’s long-term growth objectives is the key driver behind this success.

Amer Khansaheb, Board Member and Managing Director of Union Properties, said that this milestone represents a vital stage in the company’s journey of expansion, affirming their dedication to ensure significant value for the company’s stakeholders and benefitting from strategic opportunities within the market.

The successful sale of lands reflects in their belief in the strength of our portfolio and our ability to generate sustainable returns, he said.

Khansaheb added: “We are planning more strategic divestments as we navigate the dynamic market landscape. In line with the five-year strategy that we set in 2023, we will retain approximately 10 million sq ft of GFA from our current portfolio for self-development. These efforts will pave the way to fostering sustainable growth.”

Offloading More Assets

Currently, the company is studying additional offers on its assets worth more than $330 million in additional cash sale, further solidifying its dedication to enhance its capital structure and set the company for a strong and sustained growth.

The company, which faced turbulent period a couple of years ago, breathed a sigh of relief as land values in Dubai have soared significantly since then. Union Properties owns significant chunks of land, most of them in prime locations in the Emirate where new freehold development projects are taking shape.

The company has been pursuing legal battle to regain around $164 million from its former chairman and also entered into debt refinance with Emirates NBD, seeking additional time.