Developer to Begin Capital Reduction

Union Properties, a Dubai-based developer listed on the Dubai Financial Market (DFM), is set to undergo a capital reduction on August 29th, following regulatory approval. This move marks a significant step in the company's three-year restructuring plan aimed at addressing past financial challenges and losses. The company's stock has seen a substantial increase, gaining over 100% year-to-date and currently trading at Dh0.8.

The capital reduction involves decreasing the nominal value of each share, from Dh1 to Dh0.66, while the number of shares held by each shareholder remains unchanged. This process will reduce Union Properties' capital from Dh4.28 billion to Dh2.85 billion. Trading of the adjusted shares will commence on September 1st.

This strategic move mirrors a similar approach taken by another Dubai developer, Deyaar, to overcome legacy losses and foster a more stable financial position. The positive market response reflects investor confidence in Union Properties' turnaround efforts.