Union Properties receives Dhs400m offer for a 40% stake in Dubai Autodrome

Dubai developer Union Properties has received an offer of Dhs400m for a 40 per cent stake in its subsidiary Dubai Autodrome, it announced on Thursday.

Dubai Autodrome, a multipurpose motorsport and entertainment facility, includes several racing circuits.

It has hosted global races such as the FIA GT Championship, European Touring Car Championship, A1 GP, GP2 Asia, Lamborghini Super Trofeo ME, MRF Challenge, Porsche GT3 Cup Challenge ME, the Radical Middle East Cup and the Hankook 24H Dubai Endurance Race.

Khalifa Hasan Al Hammadi, chairman of Union Properties, said: “Union Properties has a number of subsidiary companies with added value in vital sectors that help achieve sustainable growth.

“As previously announced, we are in the process of converting a number of these into private joint stock companies.

“We are currently evaluating the offer and will discuss in the upcoming meeting with the board of directors to allow us to take an appropriate decision in the interest of the company’s shareholders. More details will be disclosed in accordance with applicable laws, regulations and agreements,” he added.

The board will also discuss the acquisition of other investment real estate assets in the UAE at the upcoming meeting, the company said.

Dubai-listed Union Properties announced a massive three-year restructuring plan in August, after announcing a new leadership team earlier this year.

The company, whose projects include Dubai Motor City, also signed a deal with Emirates NBD last month to restructure its Dhs946m outstanding debt and launched a new development.

Read: Dubai’s Union Properties plans new project even amid oversupply

In a statement last month, Al Hammadi said: “In the past, our group has suffered a high level of losses, mostly due to a significant drop in the real estate sector and the mandatory subsequent “marked-to-market” revaluation, which has resulted in a total net loss of Dhs160.42m for the first half of 2020. Our debt profile was also a serious challenge that needed to be addressed and this is what we have done as our number one priority.

“The group’s new leadership has now a clear roadmap and we are committed to remain on the right track. We will continue to work towards the improvement of our operational efficiencies, operating cost management as well as our overall financial position. We are also actively working with select partners towards the improvement and development of our extensive land bank to create value assets with recurring cashflows in addition to identification of new business alternatives to suit the market demand and situation.”