Union Properties said that the accumulated losses at the end of December 31, 2021 amounted to 68.3% of the capital, with accumulated losses of 2.92 billion dirhams.
In a disclosure to the Dubai Financial Market today, the company attributed the accumulated losses mainly as a result of the following provisions: “A fair value loss of 2,076 billion dirhams related to real estate investments registered in the fiscal year 2017, in addition to a fair value loss of 1,109 billion dirhams related to real estate investments registered in 2021. , in addition to a loss from the disposal of an associate company of 250 million dirhams registered in the fiscal year 2020, losses and impairment of financial instruments at fair value through profit or loss amounting to 337 million dirhams, and the sale of related party assets, which led to losses of 62 million dirhams for the year 2020. And 45.5 million dirhams in 2021, and provisions of 90.5 million dirhams once morest advance payments to contractors in 2021.”
Regarding the measures that will be taken to deal with the accumulated losses, the company indicated that it is working on presenting and disclosing a recovery plan with the Securities, Commodities and Market Authority, which is a plan to deal with the accumulated losses.
This comes in addition to preparing a work plan that includes focusing on closing existing projects and refocusing the company on its core business activities in order to win new projects.
As well as developing continuous efforts to acquire more projects in the UAE, in addition to ongoing projects as well as improving productivity and overall operational efficiency.
In addition to recovering the seized funds through legal procedures, as well as restructuring the debts owed by the company to reduce the cost of financing, recovery of unpaid receivables (particularly through court and arbitration), continuous reduction of operational costs, development of real estate expansion of the company, and asset development. With recurring cash flow, in addition to focusing on the strength of the operating subsidiaries of the group, and focusing on cash-generating activities.
