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

First payment from Motor City project sale already received, says developer

Last updated: July 28, 2025 | 08:58

Manoj Nair, Business Editor

2 MIN READ

Union Properties is slowly getting to a point where it will clear all outstanding debts. This is where the string of plot and project sales are helping.

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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.

Also Read: Dubai property: Overseas-based investors can own shares from Dh500

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."

Manoj NairBusiness Editor

Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.