By Gavin Gibbon
Union Properties had accumulated losses of $626m at the end of June this year
Union Properties has announced plans to list three of its subsidiary companies on the Dubai Financial Market (DFM).
In a statement to DFM, the Dubai-based developer behind the vast Motor City project, revealed it is looking to convert the legal form of facilities management company ServeU, interior fitout company FitOut, and the Dubai Autodrome, motorsports and entertainment facility, into private joint stock companies.
It comes as the company develops a plan to deal with accumulated losses, which stood at AED2.3 billion ($626m) at the end of June this year. The plan will be presented to the Securities and Commodities Authority and shareholders.
The developer said that “in order to enhance its financial position and diversify its sources of income” it is currently looking at “suitable investment opportunities” in various sectors, including health and hospitality.
Earlier this month, Union Properties reached an agreement with Emirates NBD to restructure an outstanding AED946m ($258m) debt with the bank.
The developer also revealed plans to launch its new 2.9m square foot Motor City Hills project.