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Union Properties PJSC has reached an AED 620 million ($168.8 million) settlement with its former chairman and other board members following a troubled period for the Dubai-listed developer.
Bourse filings to Dubai Financial Market (DFM) said the general assembly agreed the proposed settlement from Khalifa Al Hammadi and others, under which they will pay the amount to the company.
Gulf News reported that Al Hammadi, his family members and other former board members, will pay the sum in cash in one year after satisfying specific terms and conditions.
Al Hammadi was dismissed along with other board members in November 2021 after reported financial irregularities.
Following the general assembly, held at Dubai’s Ritz Carlton DIFC Monday, Amer Khansaheb, managing director and board member of Union Properties, said plots and properties sold to relatives of the former management below the market price would not be recovered.
“However, we will be recovering the price difference, which is included in the settlement,” said Khansaheb, according to the Gulf News report. The settlement amount would also not form part of the company capital, the report added.
Despite Dubai’s surging 2022 property market, Union Properties returned a profit of AED 30 million for the year, and presented a recovery plan to the UAE’s stock market regulator as accumulated losses reached 67.73% of capital.
Bourse filings show UPP’s accumulated losses reached AED 2.928 billion as of 31st December 2022.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)
