Staff Report
Dubai, UAE
Union Properties PJSC, a Dubai-based publicly-listed property developer, said its shareholders approved a settlement with its former chairman Khalifa Al Hammadi, who will repay Dh620 million within a year under the settlement plan.
The master developer of the Motor City which conceded a net loss of Dh966.8 million in 2021, has bounced back into profitability, reporting Dh30 million net profit in 2022.
“Shareholders voted to approve a favourable settlement agreement with the company’s former Chairman, Mr. Khalifa Al Hammadi, for the misappropriation of assets during his term. Under the agreement, Mr. Khalifa Al Hammadi will repay Dh620 million over the period of a year,” a company statement said.
“The settlement also calls for the return of the main office to Union Properties along with a Rolls Royce vehicle owned by a subsidiary of the company. The settlement also calls for the return of the main office to Union Properties along with a Rolls Royce vehicle owned by a subsidiary of the company.
At its Annual General Meeting, Mohamed Fardan Ali AlFardan, Chairman of the Board of Director of Union Properties, highlighted the new management team successful implementation of the turnaround strategy, restoring Union Properties to profitability, with net profit of Dh30 million compared to a net loss of Dh966.8 million in the previous year. Revenue from contracts with customers increased by 5 percent year-on-year to Dh419.2 million in 2022 as the Group’s subsidiaries continued to deliver significant performance improvements supported by strong positive momentum in the UAE’s real estate sector, the company said.
Union Properties received unanimous shareholder approval for the continuation of the company, reaffirming strong shareholder confidence in the company’s new Board and Management to execute on their turnaround strategy and deliver long term shareholder value.
Commenting on the results, Mr. Amer Khansaheb, Board Member and Managing Director of Union Properties, said: “[The year] 2022 marked an important inflection point for Union Properties with the company returning to profitability and successfully resolving legacy issues inherited from the previous management. We also completed a Dh595 million debt restructuring, which effectively reduces our financing costs and supports improved profitability and cash flow generation.
“With a bolstered balance sheet, we are in a strong position to leverage our deep expertise, reputation, and highly sought-after land bank locations to drive growth and capture opportunities in the UAE’s thriving real estate market. Union Properties is now on a solid foundation to deliver long term and sustainable value for its shareholders and is evaluating a number of potential development opportunities.”
The company is currently conducting negotiations to restructure the remaining legacy related debt with Emirates NBD and will update the market on any developments as it continues to deliver its turnaround strategy.
Shareholders elected Ms. Afaf Al Kontar to Board of Directors.The appointment of Ms. Afaf Al Kontar adds considerable expertise and experience to Union Properties Board of Directors, underscoring the Company’s commitment to enhancing its corporate governance and ensuring continued forward momentum on Union Properties’ turnaround strategy.
