Union Properties plans to list three subsidiaries on Dubai Financial Market
The company is preparing a plan to wipe out accumulated losses
Dubai developer Union Properties is planning to list three of its subsidiary companies on the Dubai Financial Market, as it prepares a plan to wipe out its accumulated losses.
The companies that will be listed on the bourse include ServeU, The FitOut and Dubai Autodrome, Union Properties said in a statement on Tuesday, without providing details on when it is planning to list.
ServeU is a facilities management company, while The FitOut specialises in offering interior fit-out to offices, hotels and restaurants. Dubai Autodrome, on the other hand, is the UAE’s first multi-purpose motorsports and entertainment facility located in the Motor City.
Union Properties also said it will present a plan to the Securities and Commodities Authority and its shareholders detailing how it will handle its accumulated losses.
The company's management is “currently studying the options available whether by reducing or increasing its share capital or other options,” it added.
Union Properties reported total accumulated losses of Dh2.3 billion as at June 30, as a general slowdown in the real estate sector in the last three years hit its revenue.
Union Properties aims to boost its finances and is looking for “suitable investment opportunities in various sectors, including the health and hospitality sectors" where it is assessing the right targets for acquisitions.
The developer, whose projects include Dubai Motor City and Dubai Autodrome, also reached an agreement earlier this month with Emirates NBD to restructure an outstanding debt of Dh946 million.
The deal with Dubai’s biggest lender, which includes payment of an initial amount is expected to significantly improve the company’s debt profile and increase its finances.
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, it said in a statement on Saturday.
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 town houses 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: August 18, 2020 06:47 PM