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Dubai’s Union Properties (UPP) saw its losses reach AED 967 million ($263 million) in 2021, with accumulated losses now exceeding 50 percent of its issued share capital.
Consolidated financial statements showed the loss in comparison to a profit of AED 185 million in 2020.
Notes to the statement also revealed the group’s current accumulated losses reached AED 2.928 billion, from an issued capital of AED 4.29 billion, exceeding 50 percent of its issued share capital.
“The group’s management team is committed in implementing a thorough cost rationalisation plan reducing its operating costs and overheads along with a change in management program which will create impact on entity’s business model, financial structure, and management team, to address challenges in order to increase value of the company for shareholders,” the statement said.
UPP voted to dismiss its then chairman Khalifa Hassan Al Hammadi in November 2021.
The consolidated financial statements added: “Additionally, the current management has mandated a forensic audit from a third party to assess the financial impact of the mismanagement attributed to the previous management team.”
(Writing by Imogen Lillywhite; editing by Seban Scaria)
