Union Properties’ subsidiary begins legal proceedings to claim Dhs1.5bn

UAE’s real estate developer, Union Properties, has confirmed that one of its 100 per cent owned subsidiary companies, has initiated arbitration procedures to claim approximately Dhs1.5bn owed.

The claim is related to the construction work for a significant project that was completed around a decade ago.

However, the name of the subsidiary and the project remains undisclosed.

Khalifa Al Hammadi, group CEO of Union Properties noted the company’s executive management will not spare any effort to pursue the collection of the amount owed, and is taking the proper legal procedures which are in the interests of the company’s shareholders.

The CEO added that the company’s shareholders and the financial market will be regularly informed of the developments of the arbitration in accordance with the laws, rules and regulations of the UAE and provided with full disclosure and transparency.

Since its launch in Dubai in 1987, Union Properties has developed a portfolio of projects including MotorCity, Uptown Mirdiff and The Dubai Autodrome, according to its website.