Dubai developer Union Properties, which reported losses last year and in the first quarter of this year, on Monday announced the completion of operational changes as part of its turnaround strategy.
The strategy aims to deliver maximum value for homeowners, residents and shareholders, the Dubai Financial Market-listed company said in a statement.
Under the improvement plan, Union Properties has merged three business units — Edacom Owners Association Management, Uptown Mirdif and Al Etihad Cold Storage — under Edacom.
The move is aimed at achieving a one-time cost saving of more than Dh7 million ($1.91m) this year, the statement said.
The consolidation is designed to “drive profitability for the business through better utilisation of resources and assets as well as cost rationalisation”.
The developer swung to a net loss of Dh966.76m in 2021 from a net profit of Dh200.98m the previous year after it rectified the value of its property portfolio that “had been inflated in prior years”, the company said.
Problems emerged last year after the Securities and Commodities Authority, the UAE's markets regulator, filed a complaint against its senior executives in October, accusing them of forgery, abuse of authority, fraud and damage to the interests of the company.
A new board was appointed in December, and a complete financial and accounting review was conducted by a third party, which uncovered “widespread fraud and misconduct by the company’s former management involving forgery, misappropriation of funds and various other financial violations”, Union Properties said.
The company has also achieved up to 30 per cent savings at its flagship development, Motor City, through subsidiaries’ collaboration between the management of Edacom and ServeU, the statement said.
board member and managing director of Union Properties
The collaboration, which seeks more than 60 per cent cost savings by the end of this year, involved Edacom and ServeU implementing green energy projects.
“These achievements mark an important step in the continuing delivery of our turnaround strategy that is focused on restructuring operations and generating greater value for our homeowners, residents and shareholders,” Amer Khansaheb, board member and managing director of Union Properties, said.
“We continue to implement a business transformation culture aimed at improving the overall efficiency and productivity of the business through better utilisation of resources and deployment of advanced technology.”
Union Properties said it has also started the design and engineering work for major infrastructure upgrade projects within Motor City.
These enhancements include the upgrade of building management control systems, landscaping improvements and lake redevelopment.
The company has introduced a range of infrastructure initiatives across its communities, including the installation of solar panels, LED conversion plans, smart waste management and major technological updates such as the deployment of computer-aided facility management systems for its business-to-business and business-to-consumer operations.
