Union Properties, a developer in Dubai, declared on Wednesday that it will begin work on three new projects totaling Dh6 billion. According to Al Khaleej, the other two projects will be revealed within the next 18 months, with the first project, Takaya, to be announced in the upcoming weeks.
Additionally, the developer reported that it had cut its debt by 50%, from Dh1.5 billion to Dh750 million, after bolstering its financial solvency and increasing the effectiveness of its asset management.
The company intends to further reduce it to Dh400 million by the end of 2024, achieving a total reduction of 73.3%, according to Union Properties CEO and board member Amer Khansaheb.
He said that the company improved asset management effectiveness and sold a portion of its land holdings, which were valued at up to Dh1 billion, among other strategic moves that strengthened its financial solvency.
New projects
The first project, “Takaya,” will include three towers with different heights, 39 townhouses, five standalone villas, 744 residential units of various sizes, and 55,000 square feet of retail space. With a construction area of 1.2 million square feet and a total area of 440,000 square feet, the project is estimated to have cost Dh2 billion. It is anticipated that details will be released in the upcoming weeks.
At an investment cost of Dh2 billion, the second project will comprise four towers connected by a podium, with approximately 3% set aside for retail space.
The study and design stages of the third project are still ongoing. It is worth an estimated Dh2 billion as an investment.
Khansaheb said, “Since 2022, the real estate sector has experienced strong growth across various fields, driven by increased demand for property ownership, both for residential and investment purposes, by diverse nationalities. This surge has been supported by the UAE government’s strategic initiatives to enhance the attractiveness of the local investment environment, attract capital, and foster major global partnerships.”
