Dubai developer Union Properties dismisses social media speculation about bank accounts

Dubai: Showing up on social media has its downsides too – Dubai developer Union Properties clearly has reason to feel concerned.

The management has issued a strong statement dismissing speculation that appeared on social media, stating that a local bank has attached the developer’s accounts. “We would like to clarify to shareholders that the company has taken all necessary measures towards the matter and currently, there is no attachment on the company’s accounts by the bank,” said UP in the disclosure.

“The lawsuit between the company and the bank is still under review by Dubai courts, and no final judgement has been issued.”

In early trading on DFM, the UP stock is up 1.54 per cent to Dh0.26 as traded volumes hit more than 5 million. 

Union Properties had been going through some financial downs in recent years, with the current management working on multiple ways to turn the operations around. Las year, some welcome results did emerge from the moves, with its master-development Motor City getting some needed push.

On the bank exposures, the developer had been in constant negotiations to work out some arrangements where it could get more time to clear these off.

Ongoing 'investigation'

In the statement, UP makes a point of mentioning, “We would like to inform you the company is conducting negotiations to restructure its debts inherited from the previous management, who are currently under investigation.

“That debt restructuring includes all the company’s creditors, where the banks are on top of them, provided that all negotiations are completed and satisfactory results are reached as soon as possible.”

This is being monitored by a committee, which is following up the plan to address UP’s accumulated losses. (By end 2021, UP's accumulated losses had been near the 70 per cent mark to the share capital.)