Dubai: Union Properties made another cut with its past by dismissing three senior members of its Board of Directors, including Khalid Bin Kalban, its former chairman. The other two whose tenures have been cut short are Ali Fardan Ali Al Fardan and Mohammad Sef Darwish Ahmad Al Ketbi.
Moreover, in resolutions approved by the general assembly, it was decided “not to absolve” Bin Kalban for the year ended December 31, 2017. The same resolution was also applied in matters related to Al Fardan.
This was confirmed in a statement issued to Dubai Financial Market on Sunday, in which the master-developer also confirmed the appointment of EY as auditors. KPMG was the incumbent.
No details of the replacements for the three now vacant positions — or when the process will be set into motion — were made available.
It was last year, after its annual meeting, that Union Properties went through a major reshuffle of its Board, leading to the ouster of Bin Kalban as chairman and followed by the confirmation of Nasser Bin Yousuf as replacement. Wholesale changes were made in the company’s structure and priorities, including those related to the management of its land bank.
Immediately thereafter, in August last, the company restated its second quarter of 2017 financials, which then showed losses of Dh2.3 billion. It also made provisions for Dh2.8 billion. Since then, UP has launched a dedicated hospitality division and recast its master plan for Motor City, the biggest development on its hands now.
Union Properties has released interim results that show a profit of Dh180 million for the first quarter. The full results for the quarter have not been released. This followed a review by EY, in its then capacity as external auditor.
It will be interesting to see what happens next on the Bin Kalban front. Bin Kalban came on board specifically to script a turnaround for UP after the property market crash of 2009. In his years at the helm, he disposed off non-core assets and also managed to bring down the debt load. But the mid-2014 correction in the market again started to place stress on the financials.
Union Properties retains a minority stake in a joint venture it has with Dubai Investments, where Bin Kalban is the CEO and Managing Director. (Dubai Investments has bought out the 50 per cent held by UP in Emicool, the district cooling company, for Dh500 million. DI is currently working on a timeline for a public float of Emicool.)