Al-Ittihad Real Estate for Arabic: We will sell assets to provide liquidity and reduce indebtedness

Amer Khansaheb, member of the Board of Directors and Managing Director of Union Real Estate Company, expected that the settlement agreement would be signed with the previous management of the company after its approval at the last assembly meeting, during the current quarter, which will be reflected positively on the company’s financial statements.

Amer Khansaheb said in an interview with Al-Arabiya, today, Friday, that an expert in financial crimes was appointed in the fourth quarter of 2022, and based on his reports 13 criminal complaints were submitted, and after months of negotiations, the settlement amount was reached with the existing assets.

He continued, “After the General Assembly approves the settlement, the agreement will be signed during the second quarter of this year.”

He pointed out that the reflection of the settlement on the company’s revenues is in the process of being discussed with the auditor to reach a decision regarding it in accordance with international accounting standards.

The managing director of Union Real Estate Company said that the company owns 15 million square feet of land in Sport City as a building area, and as part of the recovery plan, the company will sell some land to provide liquidity for the establishment of new projects, reduce indebtedness, and work on capital structural treatment.

He added that at the present time we are focusing on returning the company to profitability and its sustainability, within a 5-year business plan that includes increasing revenues to 3.5 billion dirhams, of which 3 billion is from real estate development, with a focus on reaching profitability and sustainable cash flows.

It is noteworthy that the company did not achieve operating profits during the past 7 years before 2022, in which it turned into a profit of 30 million dirhams.

In a previous interview, Amer Khansaheb said that the company does not have any debts that it is currently unable to pay, saying: “We are currently in negotiations with Emirates NBD Bank to restructure debts of 900 million dirhams to one billion dirhams, part of which will be paid and the rest is scheduled on period of 4-5 years.

He stated that the company finished last year rescheduling debts owed at a value of 595 million dirhams to about 5 banks. The dues of 4 banks were paid, and the last bank was rescheduled for 10 years.

Aamir Khansaheb, Member of the Board of Directors and Managing Director of Union Real Estate Company

Amer Khansaheb said that during the past seven years, the company was achieving operating losses, and therefore the focus was on returning operating profitability, reducing administrative expenses, and the growth of subsidiaries.

He added that the second phase is the company’s return to real estate development and has started the implementation of the “Takaya” project at a value of 1.6 billion dirhams, which is currently in the design and preparation phase to launch the project, especially that the real estate market in Dubai is experiencing a good real estate boom.

And regarding the registration of “Union Properties” a lawsuit with the Dubai courts against Dubailand, Amer Khansaheb said that the land of the Motor City area was a grant from Sheikh Mohammed bin Rashid, according to which the company obtained powers, and there is a difference in views between the two sides, and after months of negotiations, it did not We reach an agreement, and therefore we have resorted to the courts to clarify the powers and obligations of the Real Estate Union.

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