By Gavin Gibbon
Company is taking action for construction works completed around ten years ago
A subsidiary of Dubai-based developer Union Properties has launched a $408.4 million (AED1.5 billion) legal action against an unnamed company for construction works completed around ten years ago.
In a filing with Dubai Financial Market (DFM) the company said the work related to a “significant project” although no further details were revealed.
Khalifa Al Hammadi, group CEO of Union Properties PJSC, said the company’s executive management “will not spare any effort in pursuit of the collection of the amount owed”, and is taking “the proper legal procedures which are in the interests of the company’s shareholders”.
Earlier this year, the developer behind the vast Motor City project, announced $59.5m net losses for 2019, blaming bank financing costs and a “stagnation” in the real estate sector.
Al Hammadi added that shareholders and the financial market “will be regularly informed of the developments of the arbitration”.