Dubai's Union Properties closer to settling past debts after D700m deal

Dubai: Two major land deals in Dubai are adding a fresh boost to the property market – and at the same time proving crucial to the long-term fortunes of two of the companies – Union Properties and Amlak - involved.

Union Properties is netting Dh700 million from the sale of a project at its Motor City master-development, which will now go to settling rest of its ‘legacy debts and finance the company’s growth’.

The payments to Union Properties will be made in phases starting this month and ending December 2026.

The DFM-listed company said it will disclose the buyer(s) once the deal is concluded. The incoming funds will start being recognized in UP’s financials from Q4-2025.

Earlier, Amlak had announced a Dh2.9 billion sale of plots to Emaar. The land is in Ras Al Khor.

For Union Properties busy charting a comeback, the Dh700 million land deal couldn’t be more timely.

Apart from settlement of accumulated debts, it will mean the ‘culmination of the (company’s) recovery strategy (and) position the company to pivot decisively towards a new phase of sustainable growth’.

It will also mean an opportunity for ‘strategic capital deployment’.

Union Properties got Dh1.3 billion from plot sales in 2024 as part of its debt restructuring strategy.

Close curtain on UP's recovery plan

“This transaction is more than a sale - it is a signal of strength," said Amer Khansaheb, CEO of Union Properties.

"With this transition, we bring our recovery plan to a close, settle all legacy debts, and lay the foundation for a bold new chapter. This milestone reflects not only the trust and confidence of the market in our vision, but also the resilience and discipline of our team in executing one of the most successful turnaround strategies in the sector."