Union Properties, a leading UAE real estate developer, has signed a conditional sales agreement valued at $190 million (AED700 million) for a significant real estate project in Motor City, one of Dubai’s most established and sought-after communities. This landmark deal marks the culmination of the company’s comprehensive recovery plan, designed to settle all legacy debts and pave the way for sustainable growth.
Strategic Milestone in Debt Restructuring
The $190 million agreement is a pivotal step in Union Properties’ ongoing efforts to strengthen its financial position. The company has been actively reducing its legacy debt, which stood at AED1.47 billion in 2022. Through strategic asset sales, including a record AED1.3 billion ($354 million) in plot sales in 2024, Union Properties lowered its debt to AED575 million by the end of 2024. The current deal is expected to clear the remaining obligations, with funds to be recognized in the company’s fourth-quarter 2025 financials.
Structured under a deferred payment framework, the agreement ensures financial discipline, with an initial deposit already secured. This approach provides Union Properties with strong cash flow visibility and supports continued balance sheet optimization. Amer Khansaheb, CEO of Union Properties, stated, “With this transition, we bring our recovery plan to a close, settle all legacy debts.” He emphasized that the deal positions the company to shift focus toward new growth opportunities.
Enhancing Motor City’s Development
The real estate project in Motor City is set to contribute significantly to the community’s ongoing evolution. Motor City, known for its residential, commercial, and recreational offerings, including the Dubai Autodrome, is one of Dubai’s most desirable neighbourhoods. Union Properties highlighted that this project will further enhance Motor City’s appeal, aligning with the company’s vision for community-focused development.
The deal reflects Union Properties’ strategic approach to leveraging its assets in high-demand areas. By divesting this project, the company addresses its financial obligations and contributes to the growth of one of Dubai’s premier master-planned communities.
Dubai’s Thriving Real Estate Market
The announcement comes at a time of robust growth in Dubai’s real estate sector. According to industry reports, commercial property sales surged by 50% to $8.4 billion in the second quarter of 2025, underscoring the market’s resilience and attractiveness to investors. Union Properties’ ability to secure this deal amid such a dynamic market highlights its strategic foresight and operational strength.
The company’s recovery plan, initiated in 2022, has included significant asset divestitures and debt restructuring efforts. In 2024, Union Properties repaid AED966 million to lenders, reducing financing costs from AED114 million in 2023 to AED32 million in 2024. These efforts have bolstered profitability and liquidity, earning increased trust from financial institutions, as evidenced by a reduction in the margin on the three-month EIBOR from 3.25% to 2.75%.
Financial and Operational Details
The following table summarises key financial aspects of Union Properties’ recent activities:
| Metric | Details |
| Deal Value | AED700 million ($190 million) |
| Purpose | Settle legacy debts, strengthen financial position |
| Payment Structure | Deferred payment framework, initial deposit secured |
| Financial Recognition | Q4 2025 financial statements |
| 2024 Plot Sales | AED1.3 billion ($354 million) |
| Debt Reduction (2022–2024) | From AED1.47 billion to AED575 million |
| Financing Cost Reduction (2024) | From AED114 million (2023) to AED32 million |
Future Growth and Opportunities
With its legacy debts nearly resolved, Union Properties is well-positioned to pursue new development projects. The company has expressed confidence in Dubai’s property market, with plans to launch two new projects worth AED4 billion ($1.1 billion) as part of a broader AED6 billion development strategy. These initiatives are expected to drive community growth and sustainable development, aligning with Dubai’s vision for urban expansion.
Amer Khansaheb noted that 2025 will be a year of focus on innovation and community-centric projects. The company’s successful navigation of its debt challenges, coupled with strategic asset sales, demonstrates its resilience and adaptability in a competitive market.
Industry Context
The $190 million deal aligns with broader trends in Dubai’s real estate sector, where developers are capitalizing on strong demand for residential and commercial properties. The surge in commercial property sales reflects investor confidence in Dubai’s economic stability and growth potential. Union Properties’ Motor City project sale is a testament to the company’s ability to leverage high-value assets to achieve financial and strategic objectives.
Union Properties’ $190 million deal for the Motor City project is a significant achievement, marking the completion of its debt restructuring plan and setting the stage for future growth. By clearing its legacy debts and securing a strong financial foundation, the company is poised to play a leading role in Dubai’s thriving real estate market. As Motor City continues to evolve, Union Properties’ strategic vision and disciplined financial approach will likely drive further success in the UAE’s dynamic property sector.
