Dubai-based Union Properties PJSC is accelerating its turnaround strategy, reporting a strong first quarter for 2025 marked by significant debt reduction and a clear indication of upcoming project launches. The developer’s positive performance builds on its efforts to deleverage and capitalize on the robust Dubai real estate market.
Union Properties has made substantial progress in reducing its legacy debt. In the first quarter of 2025, the company successfully paid down AED 179 million of its bank debt. This follows a significant AED 723 million debt settlement achieved throughout 2024. The company has further plans to repay an additional AED 159 million in the second quarter of 2025, demonstrating a firm commitment to strengthening its financial position and long-term sustainability. This ongoing deleveraging has also allowed Union Properties to reduce the margin on the 3-month EIBOR, reflecting increasing trust from financial institutions.
The company’s focus on core operations is yielding positive results. Union Properties reported an 18.2% year-on-year increase in revenue for Q1 2025, reaching AED 163 million compared to AED 138 million in the same period last year. Gross profit also saw a healthy 25.3% rise to AED 42.8 million. This growth is attributed to stronger demand and improved operational efficiency across its subsidiaries.
Having significantly reduced its debt burden, Union Properties is now actively looking towards future growth through new project launches. The company has been strategically selling land plots, generating AED 1.3 billion, a portion of which will fund the preliminary costs of these upcoming developments. Union Properties has already returned to off-plan sales with its “Takaya” project in Motor City and has indicated that two additional projects are nearing their launch phase. These new ventures will encompass mixed-use, residential, and commercial developments, aligning with Dubai’s ambition to be a premier global investment destination. The company holds approximately 10 million square feet of gross floor area (GFA) in land earmarked for future development.
CEO and Board Member Eng. Amer Khansaheb stated that the strong Q1 performance, alongside strategic debt management, highlights the effectiveness of their long-term roadmap. He emphasized the company’s readiness to seize emerging opportunities in Dubai’s thriving real estate sector.
Key Highlights:
- Union Properties significantly reduced its legacy debt by AED 179 million in Q1 2025 and plans further reductions.
- The company reported an 18.2% increase in revenue and a 25.3% rise in gross profit for Q1 2025.
- Buoyed by its improved financial position, Union Properties is focusing on launching new development projects in Dubai.
- The developer aims to capitalize on the strong Dubai real estate market for sustainable growth.