Union Properties slashes more debt, eyes new projects after strong Q1

09/05/2025 01:59 AST

Union Properties is picking up the pace on its turnaround playbook-posting double-digit revenue growth, slashing legacy debt, and laying the groundwork for a more aggressive return to project launches in Dubai's competitive real estate space.

In Q1 2025, Union Properties continued efforts to return to financial health and operational momentum with revenue rising by 18.2% year-on-year to Dh163 million, while gross profit climbed 25.3% to Dh42.8 million-both boosted by stronger demand, improved efficiency, and contributions from high-performing subsidiaries.

Alongside its earnings, the Dubai-based developer also confirmed the repayment of Dh179 million in legacy bank debt in the first quarter, with another Dh159 million due for repayment in Q2. The company had already settled Dh723 million in debt in 2024. According to Union Properties, the ongoing deleveraging forms part of a broader financial restructuring strategy aimed at improving long-term liquidity and profitability.

In a statement accompanying the results, CEO and board member Eng. Amer Khansaheb said: "Union Properties has entered 2025 with strong momentum, underpinned by a robust first quarter that reinforces the strength of our business model and the trust of our stakeholders."

The Q1 results are the latest in a string of developments that reflect a more decisive turnaround phase for the company. In recent months, Union Properties sold off land parcels for Dh1.3 billion-part of its five-year strategy first announced in April 2023. The proceeds, the company stated, are being allocated towards debt settlement and covering upfront costs for new real estate projects.

Union Properties has also made a return to off-plan development with the launch of its Takaya project in Motor City, its first such project in years. Two additional projects are reportedly close to launch, with the company retaining approximately 10 million square feet of gross floor area (GFA) in land for future development.

While Q1 administrative expenses were higher, Union Properties attributed this to increased marketing and sales efforts linked to upcoming project launches. The company is also actively exploring options to boost liquidity and maximise asset value, moves it says are critical for staying agile in Dubai's highly competitive property sector.

The steady improvement in key financial metrics, combined with its ongoing deleveraging and new development activity, puts Union Properties in a stronger position to capitalise on the continued strength of Dubai's real estate market.

Gulfnews