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Union Properties launches first project in seven years

Union Properties Dubai Supplied
Union Properties expect to start the mixed-use Takaya development in Dubai Motor City in 2023
  • Company completed debt restructuring after turbulent year 
  • Dubai Motor City Takaya development to include 788 units 

Dubai developer Union Properties, which recently completed a debt restructuring, announced on Tuesday its first new launch for seven years.

The AED1.6 billion ($436 million) mixed-use development called Takaya will be located in Dubai Motor City, with construction expected to commence during the third quarter of 2023. Handover of units is scheduled for the final quarter of 2025. 

It will consist of 788 units across three towers, including 39 townhouses, five villas, 744 apartments and 55,000 sq ft of retail space. 

“The launch of Takaya is a symbolic moment for Union Properties. It underscores the ongoing success of our turnaround strategy,” Amer Khansaheb, managing director of Union Properties, said.

“Having successfully completed our debt restructuring, and with an attractive land bank and deep expertise in real estate development, Union Properties is now well positioned to capture further opportunities in the UAE’s thriving real estate market.”

In October, Union Properties, one of Dubai’s oldest developers, completed a $162 million debt restructuring, including a $60.7 million repayment to lenders.

The move was part of a comprehensive restructuring that followed a turbulent year for the company.

In October 2021, the Securities and Commodities Authority, the UAE’s markets regulator, accused senior executives at Union Properties of forgery, abuse of authority, fraud and damage to the interests of the company. An investigation ensued and, in November, prosecutors ordered the detention of the developer’s then chairman.

Union Properties appointed a new board in December and began a turnaround strategy in the first quarter of 2022.

The developer made a net loss of $263 million in 2021 but reported a net profit of $77,600 in the three months to the end of June.

The launch of the project comes as Dubai’s real estate market continues to boom.

JLL said average residential prices in Dubai grew 9 percent year-on-year in the third quarter, while average rental rates increased by 25 percent annually.

Across the UAE, price growth is being fuelled by investor and end-user demand. Off-plan sales are high, while secondary market sales are also improving, in light of increasing yields, according to Khawar Khan, head of research for the Middle East, Africa and Turkey at JLL.