Page 57 - UP PR REPORT - February 2025

These investments, which Union Properties intends to make over the next 18 months,
are expected to generate an annual recurring income of approximately AED40m
($10.9m).

Union Properties had earlier announced that as part of its 5-year strategy, it will be
retaining land of approximately 10 million sqf. of Gross Floor Area (GFA) from its
current portfolio for development.

Amer Khansaheb, Chief Executive Officer and Board Member, Union Properties,
commented: “With the successful reduction of our legacy debt and acquisition of new
funding to advance our strategic expansion, Union Properties has paved the way for a
new era of growth and possibilities.

“Our growing trust among financial institutions and unwavering commitment to
excellence will lay the groundwork for continued success, while also allowing us to
address the evolving needs of urban populations. The strength and potential of the
company’s portfolio are also demonstrated in different format by the availability of 10
million sqft of GFA.”

With the successful implementation of its debt restructuring strategy, Union Properties
has lowered its financing costs by AED82m ($22.2m) during FY2024, bringing it down
to AED32m ($8.7m) in FY 2024 from AED114m ($31m) in FY 2023. This has led to
improving profitability and liquidity.

As part of its asset divestment strategy, the Dubai real estate company has sold plots
and generated AED1.3bn ($350m) in funds for debt settlement agreements and fulfil
preliminary costs for new real estate projects.

Two new projects

As part of its growth strategy, Union Properties revealed plans to launch two new Dubai
projects soon. These will include mixed-use, residential, and commercial developments
that will meet the highest benchmarks of sustainability, innovation, and functionality.

Set to be launched soon, the two new projects will be strategically located. These
projects demonstrate Union Properties’ commitment to promoting sustainable growth
and improving Dubai’s real estate market by attempting to meet the changing needs.

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