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Union Properties' first quarter net profits soared to Dh179.79 million from Dh21.91 million a year ago, helped by proceeds from the sale of non-strategic assets as well as the rollback of its liabilities. The latest financials further attest that the company's turnaround from the crisis years of 2009-12 is complete, and is now setting itself up for new projects at Motor City and at Green Community.
On Dubai Financial Market, the scrip dropped to Dh2.65 on Wednesday from Dh2.76 on moderate volumes of 53.81 million shares. The price has been hovering close to the 52-week high of Dh2.91. ''Over the last two weeks the share has been particularly active as investors were already factoring in the healthy first quarter numbers,'' said P. Krishna Murthy, CEO of Dubai International Securities. ''The results confirm that the company's operations and direction is in sync with opportunities available in the property market.''
On the development side, Union Properties has in the recent past confirmed that Motor City will be the focal point for new projects, which will include an extensive retail offering as well as a cluster of high-rises. A top official also confirmed that retail will be a key driver of future revenue growth, while entertainment-themed projects will also get its attention.
On Motor City, ''There remains strong rental demand and returns within the development,'' said Simon Townsend, director of business development at the consultancy DTZ. ''The phasing of the development within the masterplan as well as timing of provision of utilities, retail and services has strengthened its reputation and as such the returns achieved by investors.
''There is confidence in the master developer, which allays fears on any potential non-completion of remaining planned phases. The proposed retail and hospitality projects announced and under construction will further cement this as a strong residential development going forward.''
Source: Manoj Nair, Associate Editor, gulfnews.com