The real estate organisation is also planning to sell more land for another Dh1 billion
Union Properties is selling off non-core land assets and is receiving substantial financial support. The Dubai developer has reached a significant milestone in the turnaround strategy and has already sold assets worth over Dh500 million. “This achievement highlights Union Properties’ strategic vision, robust market positioning, and commitment to maximizing shareholder value,” stated the statement.
Equally significant, the business is sorting through Dh1.2 billion of offers for other land sales. “The company has capitalized on productive opportunities in the Dubai real estate market to achieve this milestone,” said the statement.
The fact that land values in Dubai have increased dramatically over the past two years and the property market is experiencing a boom helps UP’s cause. Over the years, Union Properties has amassed a sizable land bank, many of which are situated in rapidly developing areas of Dubai, and the location of an upcoming crop of freehold developments.
We are planning more strategic divestments as we navigate the dynamic market landscape. In line with the five-year strategy we set in 2023, we will retain approximately 10 million square feet of GFA from our current portfolio for self-development. These efforts will pave the way to fostering sustainable growth. The successful sale of lands exceeding Dh500 million reflects our belief in the strength of our portfolio and our ability to generate sustainable returns.
Amer Khansaheb, Managing Director, Union Properties
As per a property analyst, the developer will also benefit from a reduced land bank. “UP given its funding situation will do better taking on strategic projects, any other land bank or built assets can be sold and help with the cash flow.”
Additional Benefits
The business has received two additional benefits lately. One was pursuing additional legal action to recover funds that its former chairman owed, over Dh600 million. The second relates to a debt refinance that UP entered into with Emirates NBD, allowing them to extend the amount of time they had to pay off. The most recent land sales may be useful.
