Profits for Dubai’s Union Properties exceed Dhs500m in Q3 2020

Dubai developer Union Properties has said that it recorded Dhs509.2m net profit in Q3 2020.

With these realised profits, the group managed to clear its losses for 2019 and for the first and second quarter of 2020, bringing its accumulated losses below the threshold of 50 per cent to 41.8 per cent, it announced in a statement.

The profits also helped the company scale its assets to Dhs6.2bn from Dhs5.9bn. Its shareholders equity, meanwhile, rose from Dhs2.7bn to Dhs3bn.

Consequently, its profits for the nine-month period covering January-September 2020 were valued at Dhs348.8m.

“In the span of three months, we have restructured the bulk of our debt, substantially reduced our operating costs and reinstated our credit reputation,” said Khalifa Hasan Al Hammadi, chairman of Union Properties.

Read: Union Properties approves Dhs400m offer for stake in Dubai Autodrome

“Our major achievement has been without a doubt the successful restructuring of our balance sheet notably by integrating an unclaimed Gross Floor Area (GFA) owned by our group. This exercise has been realised in close cooperation and total transparency with one of the top Middle East leading real estate valuation company, our statutory auditors and the regulatory authorities.”

“Now that we have cleaned as well as restructured our balance sheet and transformed Union Properties into one of the most solid and transparent companies listed on the Dubai Financial Market, all our focus will be on our operations and business development.”

Recently, the board of directors for Union Properties approved the offer of Dhs400m for a 40 per cent stake in its subsidiary Dubai Autodrome.

The board also voted unanimously to acquire an existing investment property in Dubai’s Business Bay area worth Dhs250m.

Additionally, it confirmed in August its plans to develop another new mixed-use project Motor City Hills development in Dubai which will include 195 single-family homes, 490 townhouses and six commercial land plots.

Read: Dubai’s Union Properties plans new project even amid oversupply