Dubai developer Union Properties to repay Dh130m bank debt in Q3-2025

Dubai: Union Properties confirmed more progress in its comeback journey with a 44% spike in gross profits for the first six months of 2025. The total was Dh75.6 million against Dh52.6 million a year ago.

But when it comes to H1-25 net profit, the Dubai developer’s numbers come in lower – Dh14.5 million against Dh34.7 million for H1-2024.

The lower net profit was due to ‘front-loaded investments in development activities and infrastructure upgrades’, Union Properties said in a statement.

For the immediate future, Union Properties is focusing on clearing the legacy debts it had been carrying for some time.

In Q2-205, the DFM-listed company announced the intent to repay Dh150 million in bank debt. “However, only Dh20 million was repaid prior to quarter-end, with the remaining Dh130 million scheduled for repayment in Q3-2025,” said a statement.  The delay was due to the timing of cash receipts after the second quarter’s close.

But there was a major win with a ‘conditional’ sale agreement valued at Dh700 million for one of its real estate assets in Motor City. This transaction is expected to be recognized in Q4-2025.

“We are pleased to report another quarter of meaningful progress in our transformation," said Amer Khansaheb, CEO of UP.

"The first-half results reflect the strength of our operating fundamentals and our ongoing commitment to long-term value creation. While we continue to invest in scaling up our development business and digitizing our operations, the financial impact of these strategic steps will unfold over the coming quarters.”