Union Properties PJSC (UPP) of Dubai has signed an agreement with a developer to transfer ownership of its Motor City shopping center. The agreement is worth AED 420 million ($114 million).
UPP, which posted a profit of AED 32 million for the first half of 2021 after a loss of AED 160 million in 2020, announced it had signed an MOU with an unnamed leading Dubai real estate developer.
In the statement to Dubai Financial Market (DFM), chairman Khalifa Al Hammadi, said: “We have recently studied the needs of the real estate market in Dubai, accordingly, and to achieve the strategy and vision of the board of directors, it was necessary to diversify the real estate portfolio owned by the company in line with the supply and demand in the real estate market, as Union Properties holds a decent amount commercial spaces, whether in Motor City or in our Uptown Mirdiff project.”
“Accordingly, the board decided that it is for the best to exit the shopping center under construction when a suitable offer was obtained,” he added.
In September 2020, the company’s board approved the sale of 40 percent of Dubai Autodrome for AED 400 million.