Union Properties said it plans to raise capital through an initial public offering (IPO) of the shares of ServeU, its facilities management subsidiary, in the second half of 2018.

The Group will list the ServeU shares on Dubai Financial Market (DFM) and invest the proceeds from the IPO to enhance Union Properties’ operations and develop its investment portfolio, the company said in a statement.

The move comes as part of Union Properties’ recently adopted strategy, which focuses on enhancing its investments, diversifying revenue sources and expanding into new markets.

“2018 marks a new phase of development and growth for Union Properties. After the Group’s extensive changes in management, structure and strategy in 2017, the company now has a unique position that will help it continue to strengthen its portfolio, diversify its revenue streams and enter new markets in the Middle East and beyond,” Ahmad Yousuf Khouri, Group CEO of Union Properties, said in a statement.

In October, Union Properties announced the formation of a new investment arm, UPP Capital Investment, which comes within the framework of the real estate group’s diversification strategy. The new entity specialises in direct and indirect property investments, and provides in-house expertise to support Union Properties’ long-term growth strategy.