Dubai developer Union Properties plans sale of non-core assets to fetch Dh1b

Dubai developer Union Properties plans sale of non-core assets to fetch Dh1b

Dubai: Union Properties has come up with a plan of action to handle its Dh2.9 billion in accumulated losses – generate Dh1 billion in proceeds from sale of all non-core assets in the next two years. The Dubai developer has given its most detailed accounting of how to emerge from the sustained run of indifferent performances in recent years, capped by a Dh1 billion loss for 2021. But the current management reckons that a turnaround is possible, which is where the sale of non-core assets comes in. If the plan succeeds, the Dh1 billion netted will ‘allow to deleverage from bank loans and invest in new projects’. Union Properties’ accumulated losses to capital is expected to drop below 50 per cent by December 2025. But given that currently, this ratio is above 50 per cent, UP is ‘required to call for a general assembly meeting to vote on either dissolving the Group or to continue its activity with an appropriate restructuring plan within 30 days of issue of these consolidated financial statements’. “The management has prepared a short- and medium-term strategy plan for a period of three years from the date of these consolidated financial statements,” the developer said. “There