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Union Properties achieves an A+ in turnaround effortsMENA

Union Properties achieves an A+ in turnaround efforts

Union Properties (UPP) has managed to turn its nightmare storyline towards a happier trajectory.

After recording a loss of AED 224.3m in 2019, the real estate development company managed to achieve a net profit of AED 200.1m in 2020 (yay!).

This was an intentional change in course, though.

Back in October, Union Properties announced it paid the totality of a AED 70m loan to its biggest lender. Its board also recently approved the sale of a 40% stake in its subsidiary Dubai Autodrome. Both moves were part of a larger restructuring plan that contributed massively to their impressive turnaround, allowing them to swing back to profits.

why it matters
Just recently, another property development company in the UAE, Damac Properties (DAMAC), reported an astounding loss of AED 1b. But with Union Properties and Nakheel recently posting an uptick in earnings, it might just be that recovery is on the way for the industry.