Stake sales and a company-wide restructure helped Union Properties - developer of Motor City - drive back into profits for 2020.
Dubai , Dubai
16 February 2021, 12:00 AM
28 February 2021, 12:00 AM
Union Properties, a leading real estate development group based in Dubai with a portfolio of diversified subsidiaries, has said that the company has head back into profits for 2020. The company confirmed Dh200.1 million as net profit as against the Dh224.3 million loss sustained in 2019.
The company said in a statement - the new strategy has reduced accumulated losses and “noticeably” increased shareholder equity by 6.4 per cent to Dh2.89 billion. Asset value totalled Dh5.99 billion.
Khalifa Hasan Al Hammadi, Chairman said, “The massive reduction in operating costs compared to previous years also helped script the turnaround”.
Last year, the developer reworked its loan obligations with Emirates NBD, extending the payment tenor. It has also won Board of Directors' approval to raise Dh400 million from a stake sale at its Autodrome project. The proposal is awaiting shareholders' approval.