Union Properties PJSC today reported its condensed consolidated interim financial results for the company and its subsidiaries for the three months ending September 30, 2017.
The UAE real estate developer delivered revenues of AED116 million in the third quarter of 2017, compared with AED253 million for the same period of last year. Operating expenses in the same period fell to AED161million, compared with AED221 million in Q3 2016.
The decrease in both revenues and operating expenses was primarily in relation to the managed wind down of Thermo LLC, a subsidiary of Union Properties that undertakes contracting work.
The company reports a net loss of AED45 million for the three months ending September 30, 2017, compared with a net profit of AED32 million in the corresponding period of last year.
Nasser Butti Omair bin Yousef, Chairman, Union Properties, said: “The third quarter of 2017 has seen Union Properties continue to take the steps required to achieve sustained growth over the long-term. With our operations now refocused around the company’s new strategic direction, we are moving forward as a stronger and more efficient company with the capabilities to seize new opportunities both in the UAE and internationally.”
The third quarter of 2017 saw Union Properties unveil a new masterplan for its flagship MotorCity development in Dubai with a completed value of more than AED8 billion. It will comprise of 44 new high and low rise buildings, more than 150 villas, and a wide range of residential, commercial, entertainment and hospitality facilities.
In line with its strategy to further diversify its operations and revenue sources, the quarter also saw Union Properties launch two new fully-owned subsidiary companies: Union Malls and Al Etihad Hotel Management.
Union Malls provides retail and leisure options in Union Properties developments. Its inaugural mall will be “The Central,” a 100,000sqm complex located in MotorCity spread over four floors offering shopping retail, dining and a wide range of leisure options.
Al Etihad Hotel Management will develop and manage luxury hotels and furnished residences in Dubai. It is expected to provide hospitality services and facilities management for approximately 3,000 serviced apartments and 3,500 hotel rooms throughout MotorCity, before expanding its business to the rest of Dubai and beyond. It launches with a pipeline of three hotel projects in MotorCity under development.