Union Properties ousts its chairman

Union Properties, the Dubai developer that swung to a Dh2.38 billion loss last year, said yesterday its shareholders dismissed the chairman and two other board members at the annual general assembly, without giving a reason for the action.

Khalid Al Kalban was ousted as chairman, while board members Ali Al Fardan and Mohammad Al Ketbi were also dismissed, Union Properties said in a statement to the Dubai Financial Market, where its shares are traded.

Separately, the developer said it posted a preliminary profit of Dh180 million in the first quarter of 2018, without giving comparative figures for the same period in 2017.

Union Properties, which restructured its board in May, has struggled to maintain profitability amid sliding real estate prices in the UAE.

The company has been actively looking to diversify income streams, expand its footprint outside its home market and enter new business lines.

In December, the company said it would sell shares in its facilities management unit through an initial public offering in the second half of this year.

Union Properties will float 100 per cent of ServeU shares by listing the unit on the Dubai stock exchange and will use the proceeds from the sale to boost its investment portfolio and operations, it said at the time.

It also sold this year its stake in district cooling firm Emicool.

In January, the company acquired a 5.7 per cent stake in Egyptian developer Palm Hills Development, without disclosing the value of the acquisition.

Shares of Union Properties fell 0.95 per cent to Dh0.838 in Dubai.