Union Properties resolves legacy debt with new Motor City sale

Union Properties has concluded its comprehensive recovery plan, which was designed to resolve all legacy debt settlements and restore long-term financial strength.

The company achieved this after signing a conditional sale agreement valued at AED 700 million (US$190.6 million) for a real estate project in Motor City.

Building on a record AED 1.3 billion (US$350 million) in plot sales achieved in 2024 as part of its debt restructuring strategy, this latest agreement is expected to be recognised in the company’s fourth quarter 2025 financials.

Union Properties completes debt recovery plan

Upon completion, the proceeds will enable Union Properties to fully settle its legacy debt, marking the culmination of a multi-year recovery strategy. It will position the company to move decisively toward a new phase of sustainable growth and strategic capital deployment.

Amer Khansaheb, CEO and Board Member of Union Properties, commented: “This transaction is more than a sale – it is a signal of strength. With this transition, we bring our recovery plan to a close, settle all legacy debts, and lay the foundation for a bold new chapter.

“This milestone reflects not only the trust and confidence of the market in our vision, but also the resilience and discipline of our team in executing one of the most successful turnaround strategies in the sector. Today, we build from a position of strength, focused on strategic development, long-term value creation, and a sustainable impact across the UAE’s real estate landscape.”

The real estate project will make a meaningful contribution to the continued evolution of MotorCity, one of Dubai’s most established and sought-after communities.

Structured under a deferred payment framework, the agreement further reinforces Union Properties’ disciplined financial approach. The initial deposit has already been secured, ensuring strong cash flow visibility and continued balance sheet optimisation.

In a statement, Union Properties said it “remains committed to delivering value-driven, market-responsive developments that elevate communities and support Dubai’s broader urban vision”.