Union Properties Achieves Land Disposal Success in Dubai, Eyes Further Growth

Union Properties Achieves Land Disposal Success in Dubai, Eyes Further Growth

Union Properties, a leading developer in Dubai, is making strategic moves by selling non-core land assets, signaling a significant milestone in its turnaround strategy and garnering substantial financial support.

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Having already disposed of assets worth over Dh500 million, Union Properties emphasizes its strategic vision and commitment to maximizing shareholder value. Additionally, the company has received offers totaling Dh1.2 billion for other land sales, demonstrating its strong market positioning and capitalizing on opportunities in the Dubai real estate market.

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Amer Khansaheb, Managing Director of Union Properties, highlights the company’s plan for strategic divestments while retaining approximately 10 million square feet of GFA from the current portfolio for self-development, aligning with the 5-year strategy set in 2023. These efforts are aimed at fostering sustainable growth and leveraging the strength of the portfolio to generate sustainable returns.

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Khansaheb further emphasizes Union Properties’ confidence in the strength of its portfolio and its ability to capitalize on the increased land values in Dubai over the past two years. With a sizable land bank, particularly in rapidly developing areas of Dubai, Union Properties is strategically positioned for future freehold developments.

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Analysts suggest that Union Properties will benefit from reducing its land bank and focusing on strategic projects to improve cash flow, given its funding situation.

In addition to land disposal, Union Properties has pursued legal action to recover funds owed by its former chairman, amounting to over Dh600 million, and entered into a debt refinance agreement with Emirates NBD, extending the repayment period.

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Overall, Union Properties’ recent successes in land disposal and strategic initiatives position the company for further growth and sustainability in the dynamic Dubai real estate market.

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