Union Properties, a Dubai-based real estate developer, has reached a settlement of Dh620 million ($168 million) with its former chairman and other members of the board.
According to a statement released by the company, the settlement was reached after several months of negotiations and is aimed at resolving outstanding legal disputes between the company and its former leadership.
The settlement includes a payment of Dh300 million to the former chairman, Dh280 million to other members of the board, and Dh40 million in legal fees.
In the statement, Union Properties said that the settlement will allow the company to move forward and focus on its core business operations.
“The settlement agreement brings an end to a period of uncertainty and allows the company to put these issues behind us and move forward with a clear focus on our core business of real estate development and investment,” the statement read.
Union Properties has been facing a number of challenges in recent years, including a decline in the real estate market in Dubai and the impact of the COVID-19 pandemic.
In 2020, the company reported a net loss of Dh2.3 billion ($626 million), compared to a net profit of Dh36.7 million ($10 million) in the previous year.
Despite these challenges, Union Properties has been working to restructure its business operations and streamline its operations in order to remain competitive in the market.
In November 2021, the company announced a new strategy aimed at diversifying its revenue streams and expanding its presence in international markets.
Under the new strategy, Union Properties plans to focus on the development of residential, commercial, and hospitality projects in the UAE, as well as expand its portfolio of international investments.
The company also plans to leverage its expertise in real estate development to enter into new sectors, such as healthcare, education, and logistics.
In addition to its new strategy, Union Properties has also been working to improve its financial performance and reduce its debt levels.
In February 2022, the company announced that it had successfully renegotiated the terms of its existing loans, resulting in a reduction in its annual interest expenses by Dh60 million ($16 million).
The company also said that it was exploring new financing options, including the issuance of new bonds or sukuk, in order to further strengthen its financial position.
With the settlement of the legal disputes with its former leadership, Union Properties is now in a stronger position to move forward and execute its new strategy.
In a statement, the company said that it remains committed to delivering long-term value to its shareholders and stakeholders.
“We are confident that with our new strategy, strong leadership team, and ongoing efforts to improve our financial performance and reduce our debt levels, we will emerge from these challenging times as a stronger and more resilient company,” the statement read. “Our focus is on driving long-term growth, for both our shareholders and customers, by investing in technology and innovation to improve our product offering. We believe that this will enable us to remain competitive in the market and deliver superior value to all of our stakeholders.” We look forward to sharing our progress with you as we continue on this journey.”
In conclusion, the settlement of the legal disputes between Union Properties and its former leadership is a positive development for the company, allowing it to focus on its core business operations and execute its new strategy aimed at diversifying its revenue streams and expanding its presence in international markets. With a strong leadership team and ongoing efforts to improve its financial performance, Union Properties is well positioned to succeed in the coming years and deliver long-term value to its shareholders and stakeholders.
