Dubai: The Dubai developer Union Properties slipped into a massive Dh966.75 million loss for 2021 compared with a Dh20098 million profit a year ago. The company, which owns Motor City, also saw a sharp decline in its non-current asset base, being valued at Dh3.69 billion against Dh5.22 billion from 2020.
Accumulated losses now are approaching the Dh3 billion mark - at end 2021, this was at Dh2.92 billion. Its share capital is Dh4.28 billion.
Union Properties had a tough year, with changes at the Board of Directors and management levels. It came under federal investigation over a deal that was entered into by a former senior member of the board.
The UP stock came under pressure on the DFM, with heavy trades totalling 820,000 plus. The stock is trading at 24 fils. For some time now, the developer had been talking about a three-year turnaround strategy, which would have seen it shed some assets and also commit to launch new projects at Motor City. The management is yet to confirm whether the latest losses require more changes to that plan.
Union Properties had been through some tough times since 2017-18, with legacy issues acting as a millstone on its financials. At the end of 2020, when it reported a profit, it was felt some of these issues were now in the past.
The latest financials show that UP record Dh352 million as ‘gain from loss of control over a subsidiary’, while revenue from contracts with customers came to Dh398.69 million against Dh375.86 million in 2020.