Dubai-listed Union Properties (UPP) has confirmed that its former chairman, family members and others will pay AED 620 million ($168.8 million) to the company in instalments following a settlement agreement. 

In a bourse filing, the company this week said it had reached a settlement with Khalifa Al Hammadi, after reports of a settlement agreement earlier this year. 

Al Hammadi was dismissed along with three other board members in November 2021.

Prior to Al Hammadi's dismissal by the board, a UAE public prosecutor began investigations into financial irregularity claims that one of the developer's properties had been sold for less than its value.

UPP today said Al Hammadi, family members and others, would pay the first instalment of AED 300 million in six payments of AED 50 million over six months.

The second instalment of AED 320 million will be paid one year after the execution of the settlement agreement. 

The company said it expected to appoint a custodian and escrow agent within two weeks. 

The payments will have a positive impact on reducing accumulated losses and will appear under “other income from settlements”, the bourse filing said. 

UPP’s accumulated losses reached AED 2.888 billion as of March 31 2023, 67.23% of capital ratio. 

The company reported a profit for Q1 2023 of 12.3 million, after a loss of AED 12.5 million in Q1 2022. 

(Reporting by Imogen Lillywhite; editing by Daniel Luiz)

(imogen.lillywhite@lseg.com)