Union Properties, whose board was restructured in May, has set up an investment arm as the Dubai developer continues to diversify its businesses amid the economic slowdown and softening property market.
The fully-owned UPP Capital Investments will specialise in direct and indirect real estate investments and assume the role of an in-house adviser to support the group's long-term strategy, Union Properties said yesterday, without specifying the capital of the new firm or when and where it will acquire assets.
This is the third subsidiary set up by the developer in recent months, after establishing Union Malls and Al Etihad Hotel Management units.
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Read more:
Union Properties open to M&A options, expansion
Union Properties to tap debt market for its Dh8bn project
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"We are concurrently taking steps to diversify our revenue streams, access new markets and capture new opportunities," its chairman Nasser bin Yousef said. He added that while the company remains committed to its core business, it has set up the investment unit to move to the next phase of its long-term strategy of positioning the company for success in both the UAE and overseas markets.
Union Malls manages retail and leisure options within the group and "The Central," a 100,000 square metre complex in MotorCity, will be the inaugural asset in its portfolio when completed. Al Etihad Hotel Management will manage luxury hotels and furnished residences in Dubai. It aims to provide hospitality services and facilities management for about 3,000 serviced apartments and 3,500 hotel rooms throughout MotorCity.
The UAE real estate sector, which has bounced back from the 2008 financial crisis, has faced some headwinds in the past few quarters. Oversupply of residential units, difficulties in securing new finances and slower economic growth have put pressure on the market, forcing developers to compete for businesses at lower margins.
Many have started developing and strengthening their own recurring revenue lines to ensure steady flow of cash.
Union Properties reported its worst-ever quarterly loss in August after it wrote down the value of investments and booked provisions to cover accounting errors of the firm's previous management. The company recorded a Dh2.3 billion net loss for the three-month period ending June, which contrasts with a Dh71.7 million profit for the same period in 2016.
Despite tougher market conditions, developers including Union properties are pressing ahead with new projects. The company launched the Dh8bn MotorCity master development plan in September which will be built over four years. Union properties plans to expand operations beyond the UAE borders an is open to mergers and acquisitions, the chairman told The National at the time.
Company%20profile
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COMPANY%20PROFILE
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Killing of Qassem Suleimani
How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
COMPANY%20PROFILE
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Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Section 375
Cast: Akshaye Khanna, Richa Chadha, Meera Chopra & Rahul Bhat
Director: Ajay Bahl
Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL
Rating: 3.5/5
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2a)
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The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Inside%20Out%202
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Results
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