Union Properties PJSC

Dubai-based Union Properties PJSC has reached settlement agreements with Dubailand and Emirates NBD after extensive negotiations. Union Properties will pay Dubailand AED400 million over three years, which will allow the company to repurpose parts of its Motor City master plan. This could lead to additional residential zones and increased Gross Floor Area (GFA), potentially increasing shareholder value. Union Properties will also pay Emirates NBD AED850 million within nine months. These settlements mark a significant achievement for Union Properties, supporting its turnaround strategy and progress towards profitability.

On 21/12/2023, the Board of Directors of Union Properties PJSC made several decisions. They agreed to enter into a settlement agreement with a national bank to repay the company's and its subsidiaries' debts, amounting between AED825 million and AED875 million, to be paid in four installments within nine months. The Board also approved an agreement with a major real estate developer in Dubai to increase the gross floor area and change the use of some land owned by the company and its subsidiaries in Motor City. Routine and operational matters of the company were also discussed.

Union Properties announced a net profit of AED 37.4m for Q3 2023, compared to a net loss of AED 11.4m in the same period in 2022. The company's revenue grew by 19% year-on-year, from AED 306m in 2022 to AED 365m in 2023. The gross profit also increased by 55% year-on-year, from AED 50m in 2022 to AED 77m in 2023. Additionally, the company's subsidiaries also performed well, with revenue from contracts with customers reaching AED 124m, up from AED 101m in 2022. The gross profit of the subsidiaries increased by 113% to AED 31m in Q3 2023, up from AED 14.7m in 2022.