Union Properties has announced that it has signed a memorandum of understanding to exit from the ownership of a shopping centre under construction in Motor City in Dubai.
The deal is valued at AED420 million ($114.3 million) and was signed with an unnamed real estate developer in Dubai, according to a filing to Dubai Financial Market.
Khalifa Al Hammadi, chairman of Union Properties, 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 centre under construction when a suitable offer was obtained.”
Last month, Union Properties said it saw profits increase by 483 percent in the second quarter of the year compared to Q1, reaching AED26.83 million.
Figures for the first six-months of the year were similarly bullish, with a total profit of AED32.4 million compared to a loss of AED160.4 million for the same period last year.
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