The winding up of its contracting subsidiary (Thermo LLC) dented revenues and profitability at Union Properties in the third quarter, which recorded revenues of Dh116 million and a net loss of Dh32 million. The corresponding 2016 numbers were Dh253 million and a net profit of Dh45 million.
The results come just a month after the developer booked significant provisions of Dh2.8 billion. This then led to losses of Dh2.3 billion for the three months to end June 30.
From that perspective, the Dh32 million net loss for the July to September period would come as some relief. In the interim, Union Properties also set up dedicated divisions to manage its hospitality and retail interests.
“The third quarter of 2017 has seen Union Properties continue to take the steps required to achieve sustained growth over the long-term,” said Nasser Butti Omair Bin Yousef, who took over as chairman earlier this year. “With our operations now refocused around the company’s new strategic direction, we are moving forward as a stronger and more efficient company with the capabilities to seize new opportunities both in the UAE and internationally.”
In Dubai, the primary focus will be to build up MotorCity to its full potential. A new masterplan for MotorCity projects a completed value of more than Dh8 billion. It will feature 44 high- and low-rise buildings, more than 150 villas, and other mixed-use facilities.
The third quarter saw Union Properties launch two fully-owned subsidiaries — Union Malls and Al Etihad Hotel Management. Union Malls provides retail and leisure options in UP promoted developments. Its first mall will be The Central, a 100,000 square metre complex in MotorCity spread over four levels.
Al Etihad Hotel Management will develop and manage luxury hotels and furnished residences. Its portfolio will include 3,000 serviced apartments and 3,500 hotel rooms throughout MotorCity, before expanding its business elsewhere in Dubai. It has launched operations with three projects in MotorCity.