Union Properties has started to execute repossession orders against defaulting investors in its flagship project Motor City, it was reported on Tuesday.
The Dubai developer is the latest to obtain cancellation orders through the Land Department and are seeking to repossess units of defaulters, Emirates Business reported.
Ayman A Okasha, Union's chief property officer, told the paper that the company had started executing the orders to repossess units in its Motor City project.
"We had sent out notices to investors at February-end, mostly for the Motor City project, asking them to honour their commitments and make the final payment for handover of their units. A default would lead to termination of their contract as per the applicable laws," he was quoted as saying.
Although Okasha did not reveal the number of notices issued to defaulters in Motor City, sources told the paper they were in the hundreds.
"Most of the investors have reached an amicable settlement with us since the completion of the project's construction. We have obtained cancellation orders for the rest and are moving to repossess the units," said Okasha.
The repossessed units will be added to Union's leasing portfolio and Okasha said the company had no plans to sell them at lower prices in the market.For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.