By: Amr Adel
Dubai – Mubasher: Union Properties (UP) is currently working on increasing its revenues from leasing operations from 40% to 60% by 2017, said chairman Khalid bin Kalban on Sunday.
Speaking to reporters at the Oia Residences launch event, the top official noted that leasing revenues currently reach 40%, whereas sales revenues amount to 60%.
UP plans to raise leasing revenues since they are considered a constant source of cash flow that can boost the company's financial position, the chairman highlighted.
UP's property portfolio ranges between 15-16 million square feet, of which 11 million square feet are in MotorCity, he added.
The real estate developer's chairman said he expects his company to see profits ranging between AED 40-50 million in Q1-16, compared to last year's profit of AED 28.1 million.
UP's profits fell 50% in FY15 to AED 434.6 million from AED 865 million in FY14.
Responding to a question on the latest developments in the third stage of UP's Green Community project, bin Kalban revealed that around 25% of the project has been completed.
"Sales are still modest," he said, noting that they are expected to rise once the project is completed.
Earlier on Sunday, UP announced beginning construction at its Oia Residences project in MotorCity at a total cost of AED 450 million.
Back in October, UP launched the third phase of its Green Community project in Dubai Investment Complex at a total cost of AED 680 million.
Translated by: Nada Adel Sobhi
