­Dubai-listed developer Union Properties (UPP) is set to cut its capital by more than a third to offset accumulated losses, which have reached nearly AED 1.9 billion ($517 million).

Shareholders have approved a 33.4% reduction in the total issued share capital, enabling the company to clean up its financials or amortise a huge chunk of the losses, amounting to around AED 1.43 billion, UPP said on Tuesday.

The company also intends to use all its legal reserves to “extinguish” the remaining amount of approximately AED437.9 million.

“This will be executed by reducing the nominal value of each share to AED 0.666 per share and utilising all legal reserves to offset the losses,” the developer said.

Union Properties also confirmed plans to invest in two new projects soon.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com