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2/27/24, 9:57 AM Dubai's Union Properties sells Dh500m in land disposal, has offers for Dh1b more - Windmills Group | Valuation Companies in Du…
Dubai’s Union Properties sells Dh500m in land disposal, has offers for Dh1b
more

26 February 2024, Gulf News

Dubai: Union Properties is getting some serious funds flowing through as it disposes off non-core land

assets.

The Dubai developer has already sold over Dh500 million worth of these assets, marking a ‘significant
milestone’ in the turnaround strategy. “This achievement highlights Union Properties’ strategic vision, robust

market positioning and commitment to maximising shareholder value,” said a statement.

Just as important, the company is sifting through offers valued at Dh1.2 billion for other land disposals.

“The company has capitalised on productive opportunities in the Dubai real estate market to achieve this
milestone,” said the statement.

Sell some – and retain rest

“We are planning more strategic divestments as we navigate the dynamic market landscape,” said Amer
Khansaheb, Managing Director. “In line with the 5-year strategy we set in 2023, we will retain approximately
10 million square feet of GFA from our current portfolio for self-development.

“These efforts will pave the way to fostering sustainable growth.”

Helping UP’s cause is the fact that land values in Dubai have risen significantly in the last two years, and
this is a city-wide phenomenon. Union Properties has had access to a significant land bank, built through
the years and many of these are in some of Dubai’s fast-track emerging locations. And where a new crop of
freehold developments are coming.

According to one property analyst, a slimmed down land bank too will serve the developer. “UP given its
funding situation will do better taking on strategic projects, any other land bank or built assets can be sold
and help with the cash flow.”

Wins on other fronts

Recently, the company had two other positives come its way. One was the pursuing of further legal action to
win back monies owed by its former chairman, totaling Dh600 million plus.

The second has to do with a debt refinance entered into with emirates NBD, whereby UP was able to get
more time to clear off. The latest land sales could help.

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