Skip to content Skip to Search
Skip navigation

Union Properties issues final notice to former chairman

Union Properties' projects include Dubai MotorCity Creative Commons/أمين علوان
Union Properties' projects include Dubai MotorCity
  • Total due AED620m
  • Khalifa Al Hammadi ‘continued to default’
  • UP returned to profit in 2022

Dubai developer Union Properties has issued a final notice to former chairman Khalifa Al Hammadi, his family members and another unnamed person. It accuses them of defaulting on a multi-million dollar settlement agreement.

The settlement deal was announced at the company’s annual general meeting last year and involved payments totalling AED620 million ($163 million).

Under the agreement, which came following extensive investigations into Al Hammadi’s time in charge of UP, AED300 million cash was to be paid in six monthly instalments of AED50 million each. The remaining AED320 million was to be settled a year after the signing of the deal.

“We worked hard to achieve the [settlement] result,” UP’s chief legal officer Fadi Saba said at the time.

However, in a note to the Dubai bourse on Wednesday, the developer said Al Hammadi and the other parties had “continued to default on paying the agreed monthly payments despite being notified several times”.

As a result, UP will “implement all the procedures stipulated in the settlement agreement, including the sale of real estate assets of Mr Khalifa Al Hammadi, his family members and other”, the statement added.

UP has already taken possession of a car owned by Al Hammadi, while Dubai Court of Appeal issued a ruling terminating a sale and purchase agreement on a building owned by UP, which was reached during the former chairman’s time at the helm of the company.

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

The resurgence continued into 2023, with reported profits of AED20 million for the first nine months of the year.

In December, the developer announced it had repaid debts worth up to AED875 million to a “national bank”.

Latest articles

The Khazna facility will raise utility Ewec’s total installed solar PV capacity to 5.5 gigawatts

Developers sought for Abu Dhabi’s Khazna solar plant

Emirates Water and Electricity Company (Ewec) is seeking developers to build a 1,500 megawatt solar power facility in Abu Dhabi as the emirate ramps up its green energy drive. The utility has issued a request for proposals to qualified companies that have expressed interest in developing the Khazna Solar Photovoltaic project. A total of 27 […]

Turkey textiles

Hit by rising costs, Turkey’s textile producers move overseas

Textile manufacturers in Turkey, struggling with pricing pressures and labour costs, are moving their operations overseas, although at least some in the sector see a turnaround by the year’s end. The Istanbul Chamber of Industry sectoral purchasing managers’ index for March showed sentiment among textile manufacturers was the lowest among the 10 sectors covered by […]

Mubadala-backed Getir weighs asset sales

Turkey’s grocery delivery startup Getir is considering asset sales as part of its ongoing restructuring talks, according to a media report. The company, operating in five markets, including the UK, aims to sell off assets such as US online grocer FreshDirect, acquired last year, and BiTaksi, a ride-hailing app in Turkey, Sky News reported, citing unnamed […]

The total value of projects under construction in Masdar City is estimated at AED1 billion

Masdar City has up to $1bn of projects at design phase

Masdar City, Abu Dhabi’s sustainability-focused urban community, is working on projects in critical sectors of the UAE, backed by investments of between AED3 and AED4 billion ($817 million and $1 billion). The projects include energy, artificial intelligence (AI), space, life sciences and agriculture, the UAE state-run Wam news agency reported, quoting CEO Ahmed Baghoum. He […]