Union Properties latest to raise foreign ownership limit

Union Properties latest to raise foreign ownership limitImage Credit: Supplied

Union Properties has become the latest listed company on Dubai Financial Market to allow a higher stake for foreign investors, with an extraordinary general meeting called by it on Monday evening approving the increase to 25 per cent from 15 per cent. Just recently, Dubai Investments and Deyaar went through the same process.

Union Properties's board of directors also told those attending the company's Annual General Meeting that profits in the first quarter rose to Dh180m, and massive increase from Q1 2013, when profits stood at 21.9 million.

The Union Properties scrip closed at Dh2.82 in Monday's trading after starting at Dh2.74; volume was quite brisk with 86 million shares active. This pushes it closer to the 52-week high of Dh2.91. The company's financials are on a strong rebound, having posted Dh1.58 billion in net profit for 2013, and with a sound project portfolio to keep it busy in the medium term.

''Foreign investors would prefer to come in now given the upside potential some of the key scrips have already shown, especially those in real estate,'' said P. Krishna Murthy, CEO of Dubai International Securities. ''It's no coincidence that some of the listed companies with already active counters are going in for a higher threshold on foreign ownership.''

Source: Manoj Nair Associate Editor, gulfnews.com


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