UAE investigates property developers for financial irregularities
Real Estate

UAE investigates property developers for financial irregularities

The UAE attorney general announced on Sunday that the chairman and other officials of Dubai-based developer Union Properties (UPRO.DU) are being investigated for financial violations, according to state news agency WAM.

According to WAM, Attorney General Hamad Saif Al Shamsi said in a statement that the federal investigation was launched in response to a complaint from the stock market regulator. The WAM report was also shared on Twitter by the Public Prosecution.

The complaint alleged violations by Union Properties Chairman Khalifa Hassan Al Hammadi along with some of its officials, including selling a real estate asset for less than its true value and concealing the beneficiary's identity, as well as forging documents and other violations that caused harm to the company and its stockholders, according to WAM.

The attorney general has ordered the seizure of some of those under investigation's property, and they are prohibited from leaving the country, according to WAM.

Union Properties shares were suspended from trading on the Dubai Stock Exchange on Sunday after falling 9% to 0.25 dirhams or $0.07. This was due to an incoming disclosure from the company, according to the bourse.

Union Properties' disclosure, which made no mention of a federal investigation, said that it was filed in response to news that was spreading on social media.

The building was sold after a review of offers and in light of the company's commitment to pay down debt, according to the media.

According to the disclosure, the building was purchased for 36 million dirhams in 1997 and was valued at 49.5 million dirhams in 2019.

Union Properties said on Sunday that a subsidiary was seeking 3.5 billion dirhams or $953 million in arbitration claims, but did not name the subsidiary, who the claims were made against. According to a Reuters calculation, Union Properties, which began operations in 1987, has a market capitalisation of just over 1 billion dirhams.

Image Source

The UAE attorney general announced on Sunday that the chairman and other officials of Dubai-based developer Union Properties (UPRO.DU) are being investigated for financial violations, according to state news agency WAM. According to WAM, Attorney General Hamad Saif Al Shamsi said in a statement that the federal investigation was launched in response to a complaint from the stock market regulator. The WAM report was also shared on Twitter by the Public Prosecution. The complaint alleged violations by Union Properties Chairman Khalifa Hassan Al Hammadi along with some of its officials, including selling a real estate asset for less than its true value and concealing the beneficiary's identity, as well as forging documents and other violations that caused harm to the company and its stockholders, according to WAM. The attorney general has ordered the seizure of some of those under investigation's property, and they are prohibited from leaving the country, according to WAM. Union Properties shares were suspended from trading on the Dubai Stock Exchange on Sunday after falling 9% to 0.25 dirhams or $0.07. This was due to an incoming disclosure from the company, according to the bourse. Union Properties' disclosure, which made no mention of a federal investigation, said that it was filed in response to news that was spreading on social media. The building was sold after a review of offers and in light of the company's commitment to pay down debt, according to the media. According to the disclosure, the building was purchased for 36 million dirhams in 1997 and was valued at 49.5 million dirhams in 2019. Union Properties said on Sunday that a subsidiary was seeking 3.5 billion dirhams or $953 million in arbitration claims, but did not name the subsidiary, who the claims were made against. According to a Reuters calculation, Union Properties, which began operations in 1987, has a market capitalisation of just over 1 billion dirhams. Image Source

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