DUBAI: Real estate developer Union Properties reported on Tuesday revenues of Dh116 million fort he third quarter of 2017, compared with Dh253 million for the same 2016 period.
While the third quarter saw Union Properties diversify its operations with two new subsidiaries, its operating expenses in the same period fell to Dh161million, compared with Dh221 million in the same 2016 quarter.
In a statement, the company said the decrease in both revenues and operating expenses was primarily in relation to the managed wind down of Thermo LLC, a subsidiary of Union Properties that undertakes contracting work.
The company reported a net loss of Dh45 million for the three months ending September 30, compared with a net profit of Dh32 million in the corresponding period of last year. Nasser Butti Omair bin Yousef, Chairman, Union Properties, said the third quarter of has seen Union Properties continue to take the steps required to achieve sustained growth over the long-term.
“With our operations now refocused around the company’s new strategic direction, we are moving forward as a stronger and more efficient company with the capabilities to seize new opportunities both in the UAE and internationally,” said Yousef.
The third quarter of 2017 saw Union Properties unveil a new masterplan for its flagship MotorCity development in Dubai with a completed value of more than Dh8 billion. It will comprise of 44 new high and low rise buildings, more than 150 villas, and a wide range of residential, commercial, entertainment and hospitality facilities, Union Properties said.
Union Malls, one of the two new fully-owned subsidiary companies launched by Union Properties in third quarter, provides retail and leisure options in Union Properties developments. Its inaugural mall will be “The Central,” a 100,000sqm complex located in MotorCity spread over four floors offering shopping retail, dining and a wide range of leisure options, the statement said.
The developer said the second subsidiary, Al Etihad Hotel Management, would develop and manage luxury hotels and furnished residences in Dubai. It is expected to provide hospitality services and facilities management for approximately 3,000 serviced apartments and 3,500 hotel rooms throughout MotorCity, before expanding its business to the rest of Dubai and beyond. It launches with a pipeline of three hotel projects in MotorCity under development.
