Dubai real estate developer Union Properties said it has registered accumulated losses of AED1.96 billion ($533.4 million) in 2020, representing about 45.7 per cent of the capital.
 
The loss was mainly due to a fair value loss of AED2.07 billion related to investment properties recorded in the fiscal year 2017 (correction of gross floor area and decline in the fair value of real estate portfolio) and the general decline of the real estate sector in the UAE, stated Union Properties in its filing to Dubai Financial Market.
 
A host of other factors too contributed to the loss such as impairment of AED503 million recorded on the fiscal year 2017 and material adverse impact of the Covid-19 pandemic on the overall UAE economy and consequently on the activities of the group.
 
Union Properties said that to tackle the accumulated losses, it will soon restructure its debt, recover the outstanding receivables, cut the operating costs in addition to developing an extensive landbank and improving assets with recurring cash flow.
 
The loss was predominantly due to variations in the valuations of its real estate portfolio. These accumulated losses could potentially be recouped in the event of an increase in the prices of lands in Dubai, stated the Emirati developer in its bourse filing.
 
Meanwhile, the company will continue focusing on its operating subsidiaries through a potential listing of certain subsidiaries and other cash-generating activities.-TradeArabia News Service

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