Union Properties approves sale of 40% stake in Dubai Autodrome for Dh400m
Dubai-based developer also approves acquisition of a Dh250m property in Business Bay
Dubai developer Union Properties has approved the sale of a 40 per cent stake in its subsidiary Dubai Autodrome for Dh400 million.
The decision was made during the company's board of directors meeting on September 29, Union Properties said in a filing to the Dubai Financial Market on Tuesday.
It approved "the offer proposed to acquire a 40 per cent stake of Dubai Autodrome's share capital amounting to Dh400 million", Union Properties said in the filing.
Dubai Autodrome, which is the UAE’s first multi-purpose motorsports and entertainment facility located in Motor City, is Union Properties' trophy asset. The subsidiary is 100 per cent owned by the developer and was established in 2004.
In August, the company outlined plans to list three of its subsidiary companies – facilities management firm ServeU; The FitOut, which specialises in interior fit-outs of offices, hotels and restaurants, and Dubai Autodrome – on the Dubai Financial Market as it restructures its business.
During the September 29 meeting, the developer also approved the acquisition of an existing property investment in Business Bay valued at Dh250m, it said, without providing details.
Union Properties also decided to proceed with negotiations to acquire other existing real estate assets in the UAE, it said.
Last week, the company said it would discuss the acquisition of real estate assets in the UAE worth Dh740m at its September 29 meeting.
In August, Union Properties said it is looking for “suitable investment opportunities in various sectors, including the health and hospitality sectors" where it is assessing the right targets for acquisitions.
Union Properties narrowed losses for the second quarter by 54 per cent on the back of cost-cutting measures.
The group's net loss for the three months ending June 30 reached Dh38.6m, compared with a Dh84m loss a year ago. Second quarter revenue from contracts with customers fell to Dh83.3m from Dh104.6m in the corresponding quarter last year.
The company, whose projects include Motor City and Uptown Mirdif, reached an agreement with Emirates NBD in August to restructure an outstanding debt of Dh946m.
The developer also announced plans to start a new project, Motor City Hills, in Dubai overlooking Sheikh Mohammed bin Zayed Road near Dubai Autodrome. The project includes 195 villas, 490 townhouses and six commercial land plots.
Union Properties has built more than 60,000 units in recent years across a number of projects in Dubai.
Updated: September 30, 2020 01:29 PM