Dubai's Union Properties signs $114mln deal to exit Motor City shopping centre

The company had decided to exit in order to diversify its real estate portfolio, UPP chairman, Khalifa Al Hammadi, said

  
FILE IMAGE: Union Properties reveals Masterplan for MotorCity. Image used for illustrative purpose.

FILE IMAGE: Union Properties reveals Masterplan for MotorCity. Image used for illustrative purpose.

Union Properties / Handout via Zawya

Dubai’s Union Properties PJSC (UPP) has signed an MoU worth AED 420 million ($114 million) with a developer to divest ownership of its shopping centre, which is under construction in Motor City.

UPP, which posted a profit of AED 32 million for the first six months of 2021, after a loss of AED 160 million for the same period in 2020, said it had signed the MOU with an unnamed leading Dubai real estate developer.

In the statement to Dubai Financial Market (DFM), chairman Khalifa Al Hammadi, said: “We have recently studied the needs of the real estate market in Dubai, accordingly, and to achieve the strategy and vision of the board of directors, it was necessary to diversify the real estate portfolio owned by the company in line with the supply and demand in the real estate market, as Union Properties holds a decent amount commercial spaces, whether in Motor City or in our Uptown Mirdiff project.”

“Accordingly, the board decided that it is for the best to exit the shopping center under construction when a suitable offer was obtained,” he added.

The company’s board approved the AED 400 million sale of 40 percent of its flagship asset, Dubai Autodrome, in September 2020.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

Imogen.lillywhite@refinitiv.com

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© ZAWYA 2021

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