Union Properties' shareholders vote for Dubai developer to continue operations, seek turnaround
UP's Board get full approval to pursue legal action against past fraudulent activities
Dubai: Shareholders in Dubai developer Union Properties have approved a revised turnaround strategy, which includes ways to come with a restructuring of its debt load. Another priority for the company’s board of directors would be to cut down on costs where possible.
Shareholders also confirmed their support for the ‘continuity of the company in carrying out its operations’. This was essential because Union Properties’ accumulated losses had crossed well over the 50 per cent mark, and which requires the company to call in shareholders to vote on continuing or file for liquidation.
“We believe Union Properties has a strong portfolio of assets that is unique in Dubai’s real estate market,” said Amer Khansaheb, Managing Director and member of the board. “This is the right time for the company to capitalise on its strengths to realise value from the strong momentum in the UAE’s property market.”
The company had earlier reported a heavy loss for 2021, and which led the board to seek new ways to work on reviving it. The losses came even as all other developers in Dubai came up with robust profits or had significantly reduced their 2020 losses.
Pursue legal action
The shareholders also voted with the board of directors in taking the legal route against former directors and executives. “The AGM marks a significant step towards resolving the company’s legacy issues and progressing with the company’s rejuvenation, as shareholders endorse our new turnaround strategy and affirm their support for legal action against the previous Board and management,” said Khansaheb.
The UP stock on DFM is at Dh0.284, still some way off from the Dh0.42, which is the 52-week high. Its lowest point was Dh0.23.
- Shareholders authorized UP's Board of Directors to appoint legal and financial experts to advise on legal proceedings against previous Board members.
- Shareholders support the continuity of the company in carrying out operations and the new management’s turnaround strategy, which 'continues to deliver good progress'.
- Shareholders received an update on the investigation into fraudulent activities by the previous management.
Our long-term vision is to become a leader in sustainable development in the region, in line with the emirate’s 2040 Urban Master Plan