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Dubai’s Union Properties reports $5m profit for Q3

Residential construction in Dubai Reuters/Steve Crisp
In the year to September more than 27,000 residential units are estimated to have been delivered in Dubai
  • Gross profit up 113% on Q3 2022
  • Demand in residential sector stays strong
  • 27,000 units delivered in year to September

The Dubai developer Union Properties (UP) has reported a net profit of AED20 million ($5.45 million) for the third quarter of the year, backed by continued strong demand in the emirate’s real estate sector.

UP, best known for its Motor City development in Dubai, transformed a AED966 million net loss in 2021 to a AED30 million net profit last year.

The resurgence has continued this year and into the third quarter, with gross profit up 113 percent on Q3 2022.

The group’s subsidiaries also witnessed a rise in revenue from contracts with customers from AED101 million in Q3 last year to AED124 million for the corresponding period in 2023.

The upturn in fortunes is in line with the company’s five-year recovery plan, initiated in 2022.

Last year it merged three of its business units, Edacom Owners Management Association, Uptown Mirdif Mall and Al Etihad Cold Store, into one single entity, Edacom Asset Management.

During 2022 UP completed a AED595 million debt restructuring, marking a milestone by resolving legacy liabilities with the majority of its lenders.

Dispute settled

Earlier this year the company, which is listed on the Dubai Financial Market, settled a long-running dispute with its former chairman, Khalifa Al Hammadi, and members of his family.

At the company’s annual general meeting in April, shareholders voted to approve a settlement which would see AED620 million repaid to UP over the next year.

A total of 27,095 residential units are estimated to have been delivered in Dubai In the year through to September, the latest real estate report from CBRE Middle East said.

The report revealed that average residential prices increased by 19.6 percent over the period, with average apartment and villa prices up 19.7 percent and 18.9 percent respectively.