Union Properties

Established as a private company in 1985, Union Properties was floated on the UAE bourse in 1993. But 61.5% of its shares are still owned by the Emirates Bank Group which is in turn largely owned by the Dubai Government.

For 2002 Union Properties declared a net profit of $19.8 million, up three per cent on 2001. Revenues for the year surged from $71.6 million to $92.3 million. But in lieu of the cash dividend paid to shareholders in 2001 of $12.2 million, the group issued bonus shares worth $17.4 million to shareholders.

Union Properties builds and owns a select portfolio of landmark properties in Dubai. Recent additions are The Tower, the tallest residential building in the UAE, Al Mussalla Towers, Union House, and the Net.Community.

Upcoming is the Dubai Autodrome and business park, a Formula One standard race track and associated commercial development which is due to stage its first event in December this year. And the Green Community of mid-market villas near Jebel Ali, for rent and 99-year leasing, that will also be completed in December.

The Skywalk Bridge - at 73 metres the longest bridge between two buildings in the world - is also nearing completion between the two 17-storey high Marriott Executive Apartments. Also in hand is an upmarket residential apartment building overlooking the Dubai Creek in Deira, and the UP Town Mirdiff residential and shopping mall project.

At the end of 2002 Union Properties owned investment properties with a total value of $352 million, up from $255 million the previous year with the transfer from development properties increased from $45.5 million to $110 million.

Long term bank loans stood at $66.4 million at the end of 2002, an increase on $53.6 million. But for an expanding property group this has to be seen as a very conservative position, which is what you might expect from a company largely owned by a bank.