Union Properties sells $136m of land to ‘foster growth’

Union Properties

• Selling land to address debt
• Further offers on $326m assets
• ‘Reviewing any good offer’

Dubai developer Union Properties has sold more than AED500 million ($136 million) worth of land as it continues to address levels of debt.

It is also looking at further offers on assets worth more than AED1.2 billion ($326 million), according to a filing on Dubai Financial Market on Monday, although no locations have been revealed.

Shares in the developer, best known for its Motor City development and the Dubai Autodrome, were up 4 percent in morning trading.

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“We are planning more strategic divestments as we navigate the dynamic market landscape,” said Amer Khansaheb, board member and managing director of Union Properties.

Khansaheb added that it would retain approximately 10 million sq ft of gross floor area from its current portfolio.

Last week Union Properties announced a net profit for 2023 of AED811 million and revealed plans to spend AED5 billion on new projects.

On the ongoing asset sales, Khansaheb said: “These efforts will pave the way to fostering sustainable growth.”

In 2022 Union Properties completed a AED595 ($162) million debt restructuring by resolving legacy liabilities with the majority of its lenders.

Speaking after the company’s annual general meeting last year, Khansaheb said: “Our target is land [sales], but we’ll obviously review any good offer that we get on any asset, be it Dubai Autodrome or anywhere else.

“We need to raise AED1 billion of cash and we can’t say no to good deals.”