Dubai-based developer Union Properties has confirmed that it is looking to list the shares of three of its subsidiaries.
The master developer of Dubai’s Motor City district is currently developing a plan to improve its cash flow and seeks to turn Dubai Autodrome, The Fitout and ServeU into private joint stock companies, it said in a bourse filing with the Dubai Financial Market (DFM) on Tuesday.
It is also exploring other options, including whether or not it would be beneficial to cut or increase its share capital.
The company reported this month a net loss of 38.56 million UAE dirhams for the second quarter of the year. It had also reached a deal with Emirates NBD to restructure its debt, which has amounted to 946 million dirhams.
“The management of the company is developing a plan for dealing with the accumulated losses and are in preparation for presenting the plan to the Securities and Commodities Authority and the shareholders of the company, as they are currently studying the options available whether by reducing or increasing its share capital or other options,” the firm said.
“The company confirms that it is seeking to convert the legal form of three subsidiary companies (ServeU, The FitOut and Dubai Autodrome) into private joint stock companies and list shares on the Dubai Financial Market,” it added.
ServeU, which has 5,000 people on its payroll, is a provider of integrated facilities services, while Fitout offers interior fit-outs to hotels, restaurants, retail and other commercial customers. Dubai Autodrome is a multipurpose motorsport and entertainment facility at Dubai Motor City.
The company had earlier said it is exploring the possibility of making acquisitions in the health and hospitality sectors, in order to enhance its financial position and diversify its income sources.
Earlier this month, it also unveiled its plan for its new Motor City Hills project, which will cover a total area of 2.9 million square feet.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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