Dubai – Mubasher: Union Properties has incurred accumulated losses of AED 1.96 billion as at the end of 2020, representing 45.7% of the capital.
The accumulated losses are attributed to an AED 2.076 billion fair value loss related to investment properties and an AED 503 million impairment in 2017, according to a bourse filing on Monday.
In addition, the real estate sector in the UAE has retreated, and the coronavirus (COVID-19) pandemic has negatively affected the overall UAE economy and consequently the company's activities.
To tackle the accumulated losses, the company will restructure its debt, recover its outstanding receivables, reduce its operating costs, develop its extensive landbank, and improve assets with recurring cash flow.
Meanwhile, the company will focus on its operating subsidiaries through a potential listing of certain subsidiaries and cash-generating activities.
It is noteworthy to mention that in 2020, the company logged net profits of AED 200.99 million, against net losses of AED 224.3 million in 2019.
