By Staff writer
Union Properties said that the amount owed to one of its wholly owned subsidiaries was related to a "significant project" in Dubai, although no further details were revealed
It could take as long as “18 months” for a verdict to be delivered in a $408.4 million (AED 1.5bn) legal action filed by Union Properties against an unnamed contractor for construction works completed 10 years ago, the company has announced.
On Wednesday, Union Properties said that the amount owed to one of its wholly owned subsidiaries was related to a “significant project” in Dubai, 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”.
In a separate statement filed to the Dubai Financial Market on Thursday, Union said that the resolution of the proceedings could take 18 months.
“The arbitration proceedings are ongoing before one of the most prominent international arbitral institutions in Dubai,” the developer said.
The statement added that Union Properties is being represented by a leading American law firm with a proven track record in similar cases and international arbitration.
“In the event that the subsidiary is able to obtain a successful award in this case, whether for the full claim amount or less, it is obvious that this will reflect very positively on the financial position of both the subsidiary as on Union Properties being the parent company of the subsidiary.”