Union Properties plans to publicly list three subsidiaries in Dubai
The developer plans to list ServeU, FitOut, Dubai Autodrome on the Dubai Financial Market to enhance its financial position
Dubai-based real estate developer Union Properties, which earlier this month completed the debt restructuring of $257.6m (AED946m) with Emirates NBD, has revealed plans to make three of its subsidiaries public.
In a stock market filing, the developer of Motor City Hills project, said that ServeU, FitOut, and Dubai Autodrome will be listed on the Dubai Financial Market.
The company said that it plans to convert the three companies into private joint stock companies.
In order to deal with the accumulated losses of $623.7m (AED2.3bn) in the six-month period ending 30 June, 2020, the company is planning and preparing a plan that will later be shared with the Securities and Commodities Authority and the shareholders of the company.
In January this year, when it was studying the prospect of making the three subsidiaries public. Union Properties had announced that the move comes as a quantum leap in the companies’ strategies, growth plans, and future expansions.
Union Properties recorded a net loss of $10.5m (AED38.56m) in Q2 2020, marking a 68% decline from the net loss of $33.2m (AED121.86m) in the first quarter, as the developer put in place cost cutting measures.
The developer is planning to diversify its sources of income and enhance its financial position, and in doing so it is reviewing “suitable investment opportunities in various sectors, including the health and hospitality sectors”; in addition it also looks to make acquisitions in one or more of the sectors.