Union Properties PJSC (UPP) has merged three business units as part of its turnaround strategy, which will achieve cost savings of AED 7 million ($1.9 million) this year.

The company has merged Uptown Mirdif and Al Etihad Cold Storage under EDACOM Owners Association Management to bring about cost savings.

The consolidation is designed to drive profitability for the business through better utilisation of resources and assets as well as cost rationalisation, the company said in a Dubai Financial Market (DFM) statement today.

Further cost savings will achieve a one-time cost saving of more than AED 7 million within the next 12 months, the Dubai-based developer said.

UPP said it had already made a 30 percent savings in flagship development Motor City through subsidiaries’ collaboration between the management of EDACOM and ServeU.

The collaboration, which targets more than 60 percent cost savings by the end of 2022, involved EDACOM and ServeU implementing green energy projects in line with Dubai Clean Energy Strategies.

The company has also started design and engineering work for major infrastructure upgrade projects within Motor City, including the upgrade of buildings management control systems, landscaping improvements, and lake redevelopment.

Managing director Amer Khansaheb, said the turnaround strategy is focused on restructuring operations and generating greater value for homeowners, residents and shareholders.

The company has also installed of solar panels, LED conversion plans, smart waste management, and computer-aided facility management, the statement said.

UPP reported a loss of AED 12.5 million in the first quarter of 2022, and accumulated losses reached AED 2.94 billion.

The company is undergoing restructuring in the face of fraud and financial misconduct allegations which emerged last year. Four board members were dismissed and new ones were appointed in December 2021.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)