Dubai Autodrome builder Union Properties drives back into profits for 2020
Expenses were curtailed and there was also higher contributions from subsidiaries
Dubai: Stake sales and a company-wide restructure helped Union Properties – developer of Motor City – head back into profits. The company confirmed Dh200.1 million as net profit as against the Dh224.3 million loss sustained in 2019.
The new strategy has reduced accumulated losses and “noticeably” increased shareholder equity by 6.4 per cent to Dh2.89 billion, the company said in a statement. Asset value totalled Dh5.99 billion.
“The massive reduction in operating costs compared to previous years” also helped script the turnaround, according to Khalifa Hasan Al Hammadi, Chairman.
Last year, the developer reworked its loan obligations with Emirates NBD, extending the payment tenor. It has also won Board of Directors' approval to raise Dh400 million from a stake sale at its Autodrome project. The proposal is awaiting shareholders' approval.