Union Properties expects to book Dh200m profit from new Motor City offplan launch

Dubai: The Dubai developer Union Properties expects to book a neat profit of Dh200 million from its return to property launches, through a Dh1.15 billion project in Motor City. The launch of  'Takaya' also marks a possible return to form of a company that had been focused on rewiring itself in the last 2-3 years after suffering heavy financial losses.

Takaya units are listed as starting from Dh750,777 for a studio, with a 3 year post handover plan. Motor City is already an established destination for mid to upper-mid residential options. Union Properties will be hoping it will hot the sweet spot of demand for affordable residential options in Dubai.

The developer will meet the Dh1.15 billion cost of the project through own funds and some bank financing. That in itself is quite a statement the company is delivering after extensive restructuring of the organisation and a 3-year full turnaround plan.

Problems started in 2021-22 when quarterly losses widened, and which then resulted in the ouster of the previous board. A newly constituted management then took over control, with a clear mandate to keep costs tight and generate fresh equity where possible through selling anything deemed non-core. There was also extensive talks with its lenders for more favourable timelines on the debt repayments.

Now comes the relaunch

"The launch of ‘Takaya’ project is in line with our long-term growth objectives, further reinforcing our commitment to delivering superior quality for customers," said Amer Khansaheb, CEO, one of the key movers in the UP turnaround story.

"By leveraging our extensive industry expertise and market insights, we look forward to capitalising on new opportunities in the real estate market and future-ready liveable environments."

On DFM, the stock is trading at Dh0.33 against a 52-week low and high of Dh0.27 and Dh0.46, respectively.