Union Properties PJSC — Regulatory Filings 2021

Oct 24, 2021

Reference: UPP/CS/JK/2021-046 Date: 24/10/2021

UPP/CS/JK/2021-046 :ﻣﺮﺟﻊ 2021 / 10 / 24 :اﻟﺘﺎرﻳﺦ

Mr. Hassan Abdulrahman Al Serkal Chief Executive Officer Dubai Financial Market Dubai, UAE

Dear Mr. Al Serkal,

اﻟﺴﻴﺪ / ﺣﺴﻦ ﻋﺒﺪاﻟﺮﺣﻤﻦ اﻟﺴﺮﻛﺎل اﻟﻤﺤﺘﺮم اﻟﺮﺋﻴﺲ اﻟﺘﻨﻔﻴﺬي ﺳﻮق دﺑﻲ اﻟﻤﺎﻟﻲ – اﻟﻤﺘﺤﺪة اﻟﻌﺮﺑﻴﺔ اﻹﻣﺎرات دﺑﻲ ،ﺗﺤﻴﺔ ﻃﻴﺒﺔ وﺑﻌﺪ

Subject: Clarification Disclosure

ﺑﻴﺎن ﺗﻮﺿﻴﺤﻲ :اﻟﻤﻮﺿﻮع

With reference to what is being circulated on social media platforms regarding the sale of an asset in 2020, the company confirms that the sale of assets is carried out in accordance with a methodology approved by the Board of Directors and its Executive Management through following strict procedures in terms of the fair evaluation of its assets by reputable real estate valuers, and following The procedures stipulated in the governance controls of public joint stock companies when conducting any transactions with related parties leading to conflict of interest.

إﺷﺎرة إﻟﻰ ﻣﺎ ﻳﺘﺪاول ﻋﺒﺮ إﺣﺪى اﻟﻤﻮاﻗﻊ اﻻﻟﻜﺘﺮوﻧﻴﺔ ووﺳﺎﺋﻞ اﻟﺘﻮاﺻﻞ اﻻﺟﺘﻤﺎﻋﻲ، ﺑﺸﺄن ﺑﻴﻊ أﺣﺪ اﻷﺻﻮل ، ﺗﺆﻛﺪ اﻟﺸﺮﻛﺔ أن ﺑﻴﻊ اﻷﺻﻮل ﻳﺘﻢ 2020 ﻓﻲ ﻋﺎم وﻓﻖ ﻣﻨﻬﺠﻴﺔ ﻣﻌﺘﻤﺪة ﻟﺪى ﻣﺠﻠﺲ اﻹدارة واﻹدارة ﺧﻼل إﺗﺒﺎع إﺟﺮاءات ﺻﺎرﻣﺔ ﻣﻦ ﺣﻴﺚ اﻟﺘﻨﻔﻴﺬﻳﺔ ﻣﻦ اﻟﺘﻘﻴﻴﻢ اﻟﻌﺎدل ﻟﺘﻠﻚ اﻷﺻﻮل ﻟﺪى ﻣﻘﻴﻤﻴﻦ ﻋﻘﺎرﻳﻴﻦ ﻣﻌﺘﻤﺪﻳﻦ، وإﺗﺒﺎع اﻹﺟﺮاءات اﻟﻤﻨﺼﻮص ﻋﻠﻴﻬﺎ ﻓﻲ ﺿﻮاﺑﻂ ﺣﻮﻛﻤﺔ اﻟﺸﺮﻛﺎت اﻟﻤﺴﺎﻫﻤﺔ اﻟﻌﺎﻣﺔ ﻋﻨﺪ إﺟﺮاءات أﻳﺔ ﺗﻌﺎﻣﻼت ﻣﻦ أﻃﺮاف ذات ﻋﻼﻗﺔ ﺗﺆدي إﻟﻰ ﺗﻌﺎرض اﻟﻤﺼﺎﻟﺢ.

And in the context of the company’s success in the plan to restructure its debts with its lenders, which was disclosed on August 10, 2020, among the conditions of the restructuring was the commitment of Union Properties to pay a number of cash installments in accordance with the agreed dates, and since it is known that the financial restructuring or debts of any company includes a review of its assets so that inferior assets are disposed of or ways to provide liquidity; The company has disposed of some assets, as the total disposals amounted to approximately AED 161 million, creating cash flow that contributed – along with other income - to the repayment of Approximately 175 million dirhams, which constitutes 12% of loans, which led to the management’s success in reducing financing expenses during 2020 by approximately 31%

وﻓﻲ إﻃﺎر ﻧﺠﺎح اﻟﺸﺮﻛﺔ ﻓﻲ ﺧﻄﺔ إﻋﺎدة ﻫﻴﻜﻠﺔ ﻓﺼﺎح ﻋﻨﻬﺎ دﻳﻮﻧﻬﺎ ﻟﺪى اﻟﺠﻬﺎت اﻟﻤﻘﺮﺿﺔ واﻟﺬي ﺗﻢ اﻹ ، ﻛﺎن ﻣﻦ ﺿﻤﻦ ﺷﺮوط 2020 أﻏﺴﻄﺲ 10 ﺑﺘﺎرﻳﺦ إﻋﺎدة اﻟﻬﻴﻜﻠﺔ اﻟﺘﺰام ﺷﺮﻛﺔ اﻻﺗﺤﺎد اﻟﻌﻘﺎرﻳﺔ ش.م.ع ﺑﺴﺪاد ﻋﺪد ﻣﻦ اﻷﻗﺴﺎط اﻟﻨﻘﺪﻳﺔ وﻓﻘﴼ ﻟﻠﻤﻮاﻋﻴﺪ اﻟﻤﺘﻔﻖ ﻋﻠﻴﻬﺎ، وﺣﻴﺚ أﻧﻪ ﻣﻦ اﻟﻤﻌﻠﻮم أن إﻋﺎدة اﻟﻬﻴﻜﻠﺔ اﻟﻤﺎﻟﻴﺔ أو اﻟﺪﻳﻮن ﻷي ﺷﺮﻛﺔ ﺗﺸﻤﻞ إﻋﺎدة اﻟﺘﺼﺮف ﻓﻲ اﻷﺻﻮل اﻟﻨﻈﺮ ﻓﻲ أﺻﻮﻟﻬﺎ ﺑﺤﻴﺚ ﻳﺘﻢ اﻟﺮدﻳﺌﺔ وﺗﻮﻓﻴﺮ اﻟﺴﺒﻞ ﻟﺘﻮﻓﻴﺮ اﻟﺴﻴﻮﻟﺔ؛ ﻓﻘﺪ ﻗﺎﻣﺖ اﻟﺸﺮﻛﺔ ﺑﺎﻟﺘﺼﺮف ﻓﻲ ﺑﻌﺾ اﻷﺻﻮل ﺣﻴﺚ ﺑﻠﻎ ﻣﻠﻴﻮن درﻫﻢ ﺑﻤﺎ 161 إﺟﻤﺎﻟﻲ اﻟﺘﺼﺮﻓﺎت ﻣﺎ ﻳﻘﺎرب ﺑﺠﺎﻧﺐ اﻹﻳﺮادات اﻷﺧﺮىﺧﻠﻖ ﺳﻴﻮﻟﺔ ﻧﻘﺪﻳﺔ أﺳﻬﻤﺖ - ﻣﻠﻴﻮن درﻫﻢ وﻫﻮ ﻣﺎ 175 ﻓﻲ ﺳﺪاد ﻣﺎ ﻳﻘﺎرب، ﻣﻤﺎ أدى إﻟﻰ ﻧﺠﺎح ﻣﻦ اﻟﻘﺮوض٪ 12 ﻳﺸﻜﻞ ﻧﺴﺒﺔ 2020 اﻹدارة ﺑﺨﻔﺾ ﻣﺼﺮوﻓﺎت اﻟﺘﻤﻮﻳﻞ ﺧﻼل ﻋﺎم ، وﺧﻠﻖ ﻓﺮص 2019 ﺗﻘﺮﻳﺒﴼ ﻣﻘﺎرﻧﺔ ﺑﻌﺎم٪ 31 ﺑﻨﺴﺒﺔ ﺟﺪﻳﺪة أﺳﻬﻤﺖ ﻓﻲ ﻃﺮح اﻟﻤﺸﺎرﻳﻊ اﻟﺠﺪﻳﺪة

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compared to 2019 and created new opportunities that contributed to the launch of new projects for the company, which restored confidence in the quality of the company’s business, where “Motor City Hills” project and “Motor City Views” project were recently launched. This was despite the fact that the global economy has not fully recovered from the spread of Covid-19 pandemic, noting that the company obtains evaluations from competent valuators before disposing of any asset and after following the legal procedures.

ﻟﻠﺸﺮﻛﺔ ﺑﻤﺎ أﻋﺎد اﻟﺜﻘﺔ ﻓﻲ ﺟﻮدة أﻋﻤﺎل اﻟﺸﺮﻛﺔ ﺣﻴﺚ ﺗﻢ ﻣﺆﺧﺮﴽ ﻃﺮح ﻣﺸﺮوع ﻣﻮﺗﻮر ﺳﻴﺘﻲ ﻫﻴﻠﺰ ﻠﻲ اﻟﺮﻏﻢ ﻣﻦ وﻣﺸﺮوع ﻣﻮﺗﻮر ﺳﻴﺘﻲ ﻓﻴﻮز وذﻟﻚ ﻋ ﻋﺪم ﺗﻌﺎﻓﻲ اﻻﻗﺘﺼﺎد اﻟﻌﺎﻟﻤﻲ ﺑﺸﻜﻞ ﻛﺎﻣﻞ ﻣﻦ ، ﻋﻠﻤﴼ ﺑﺄن اﻟﺸﺮﻛﺔ ﻗﺪ 19 اﻧﺘﺸﺎر ﺟﺎﺋﺤﺔ ﻛﻮﻓﻴﺪ ﺣﺼﻠﺖ ﻋﻠﻰ ﺗﻘﻴﻴﻤﺎت ﻣﻦ ﺟﻬﺎت ﻣﺨﺘﺼﺔ ﻗﺒﻞ اﻟﺘﺼﺮف ﻓﻲ أي أﺻﻞ وﺑﻌﺪ اﺗﺒﺎع اﻹﺟﺮاءات اﻟﻘﺎﻧﻮﻧﻴﺔ.

As for the sale of the asset referred to in the circulated news which was sold in March 2020, the company confirms that the buyer Ms. Amna Al Hammadi is not considered a related party based on the definition of “Related Parties” contained in the governance controls for public joint stock companies issued by the Securities and Commodities Authority or the company’s articles of association and the company clarifies that the sold property is a residential building bought in 1997 for an amount of AED 36 Million, and was mortgaged to one of the company’s and one of its subsidiaries’ lenders since 2009, and registered in the books of the company for AED 49.5 million according to the annual financial statements for the year 2019 - before the spread of the Covid-19 pandemic and its accompanying negative effects – and In light of the company's commitment to settle its debt towards its lenders and after studying the offers received by the company, the asset was sold for AED 30 Million with the buyer bearing all selling fees and expenses in order to meet the required installments of the lender, and the company confirms that the entire amount received from the sale has been paid to the lender, and the company also committed to reflecting the financial impact of the transaction in the financial statements for the first quarter of 2020.

أﻣﺎ ﺑﺸﺄن ﺑﻴﻊ اﻷﺻﻞ اﻟﻤﺸﺎر إﻟﻴﻪ ﻓﻲ اﻷﺧﺒﺎر اﻟﻤﺘﺪاوﻟﺔ 2020 واﻟﺬي ﺗﻢ ﺑﻴﻌﻪ ﻓﻲ ﺷﻬﺮ ﻣﺎرس ﻣﻦ ﻋﺎم ﺗﺆﻛﺪ اﻟﺸﺮﻛﺔ أن اﻟﻄﺮف ﻓﻲ ﻋﻤﻠﻴﺔ اﻟﺒﻴﻊ اﻟﺴﻴﺪة آﻣﻨﻪ اﻟﺤﻤﺎدي ﻻ ﺗﻌﺪ ﻃﺮف ذو ﻋﻼﻗﺔ ﺑﺤﺴﺐ ﺗﻌﺮﻳﻒ / "اﻷﻃﺮاف ذات اﻟﻌﻼﻗﺔ" اﻟﻮارد ﻓﻲ ﺿﻮاﺑﻂ ﺣﻮﻛﻤﺔ ﻫﻴﺌﺔ اﻟﺸﺮﻛﺎت اﻟﻤﺴﺎﻫﻤﺔ اﻟﻌﺎﻣﺔ اﻟﺼﺎدر ﻋﻦ اﻷوراق اﻟﻤﺎﻟﻴﺔ واﻟﺴﻠﻊ أو اﻟﻨﻈﺎم اﻷﺳﺎﺳﻲ ﻟﻠﺸﺮﻛﺔ، ﻛﻤﺎ ﺗﻮﺿﺢ اﻟﺸﺮﻛﺔ أن اﻷﺻﻞ اﻟﻤﺒﺎع ﻫﻮ 1997 ﻋﺒﺎرة ﻋﻦ ﻣﺒﻨﻰ ﺳﻜﻨﻲ ﺗﻢ ﺷﺮاﺋﻪ ﻓﻲ ﻋﺎم ﻣﻠﻴﻮن درﻫﻢ، وﻛﺎن ﻣﺮﻫﻮﻧﴼ ﻟﺪى إﺣﺪى 36 ﺑﻤﺒﻠﻎ اﻟﺠﻬﺎت اﻟﻤﻘﺮﺿﺔ واﻟﺘﻲ ﻗﺎﻣﺖ ﺑﺈﻗﺮاض اﻟﺸﺮﻛﺔ ، وﻣﻘﻴﺪ ﻓﻲ 2009 وإﺣﺪى اﻟﺸﺮﻛﺎت اﻟﺘﺎﺑﻌﺔ ﻣﻦ ﻋﺎم وﻓﻘﺎ ﻣﻠﻴﻮن درﻫﻢ 49.5 دﻓﺎﺗﺮ اﻟﺸﺮﻛﺔ ﺑﻤﺒﻠﻎ أي ﻗﺒﻞ – 2019 ﻟﻠﺒﻴﺎﻧﺎت اﻟﻤﺎﻟﻴﺔ اﻟﺴﻨﻮﻳﺔ ﻟﻌﺎم ﻓﻘﻬﺎ ﻣﻦ آﺛﺎر ﺳﻠﺒﻴﺔ ا وﻣﺎ ر 19 إﻧﺘﺸﺎر ﺟﺎﺋﺤﺔ ﻛﻮﻓﻴﺪ – وﻓﻲ ﺿﻮء إﻟﺘﺰام اﻟﺸﺮﻛﺔ ﺑﺴﺪاد اﻟﺪﻳﻮن اﻟﻤﺴﺘﺤﻘﺔ ﻟﻠﺠﻬﺔ اﻟﻤﻘﺮﺿﺔ وﺑﻌﺪ دراﺳﺔ اﻟﻌﺮوض 30 ﺗﻢ ﺑﻴﻊ اﻷﺻﻞ ﺑﻘﻴﻤﺔ اﻟﺘﻲ ﺗﻠﻘﺘﻬﺎ اﻟﺸﺮﻛﺔ درﻫﻢ ﻣﻊ ﺗﺤﻤﻞ اﻟﻤﺸﺘﺮي ﻟﺠﻤﻴﻊ رﺳﻮم ﻣﻠﻴﻮن وﻣﺼﺎرﻳﻒ اﻟﺒﻴﻊ وذﻟﻚ ﻟﻠﻮﻓﺎء ﺑﺎﻷﻗﺴﺎط اﻟﻨﻘﺪﻳﺔ ﻟﻠﺠﻬﺔ اﻟﻤﻘﺮﺿﺔ، وﺗﺆﻛﺪ اﻟﺸﺮﻛﺔ أﻧﻪ ﺗﻢ ﺳﺪاد ﻛﺎﻣﻞ اﻟﻤﺒﻠﻎ اﻟﻤﺤﺼﻞ ﻣﻦ ﻋﻤﻠﻴﺔ اﻟﺒﻴﻊ ﻟﻠﺠﻬﺔ ﻛﻤﺎ اﻟﺘﺰﻣﺖ اﻟﺸﺮﻛﺔ ﺑﻌﻜﺲ اﻷﺛﺮ اﻟﻤﻘﺮﺿﺔ، اﻟﻤﺎﻟﻲ ﻟﻠﺼﻔﻘﺔ ﻓﻲ اﻟﺒﻴﺎﻧﺎت اﻟﻤﺎﻟﻴﺔ ﻟﻠﺮﺑﻊ اﻷول ﻣﻦ . 2020 ﻋﺎم

The company calls upon all shareholders and valued investors to obtain information about the company from official sources and not to be deceived by news on social media or electronic forums regarding the company’s news, its financial

اﻟﻤﺴﺎﻫﻤﻴﻦ ﻋﻤﻮم اﻟﺸﺮﻛﺔ وﺗﻬﻴﺐ واﻟﻤﺴﺘﺜﻤﺮﻳﻦ اﻟﻜﺮام ﺑﺎﺳﺘﻘﺎء اﻟﻤﻌﻠﻮﻣﺎت ﻋﻦ اﻟﺸﺮﻛﺔ ﻣﻦ اﻟﻤﺼﺎدر اﻟﺮﺳﻤﻴﺔ وﻋﺪم اﻻﻧﺴﻴﺎق وراء ﻛﻞ ﻣﺎ ﻳﺬاع وﻳﻨﺸﺮ ﻋﻠﻰ وﺳﺎﺋﻞ اﻟﺘﻮاﺻﻞ اﻻﺟﺘﻤﺎﻋﻲ أو اﻟﻤﻨﺘﺪﻳﺎت اﻹﻟﻜﺘﺮوﻧﻴﺔ ﻓﻴﻤﺎ ﻳﺘﻌﻠﻖ

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situation, rumors of its bankruptcy and business cessation, or any other such rumors, the company confirms that it will take legal measures against anyone who publishes misleading information about the company, its board members or its employees, in accordance with the provisions of the law.

ﺑﺄﺧﺒﺎر اﻟﺸﺮﻛﺔ ووﺿﻌﻬﺎ اﻟﻤﺎﻟﻲ وﺷﺎﺋﻌﺎت أﻓﻼﺳﻬﺎ ،وﺗﻮﻗﻒ أﻋﻤﺎﻟﻬﺎ أو أﻳﺔ ﺷﺎﺋﻌﺎت أﺧﺮى ﻣﻦ ﻫﺬا اﻟﻘﺒﻴﻞ ﺣﻴﺚ ﺗﺄﻛﺪ اﻟﺸﺮﻛﺔ أﻧﻬﺎ ﺳﺘﻘﻮم ﺑﺎﺗﺨﺎذ اﻹﺟﺮاءات اﻟﻘﺎﻧﻮﻧﻴﺔ ﻓﻲ ﺣﻖ ﻛﻞ ﻣﻦ ﻳﻘﻮم ﺑﻨﺸﺮ اﻟﻤﻌﻠﻮﻣﺎت اﻟﻤﻀﻠﻠﺔ ﺣﻮل اﻟﺸﺮﻛﺔ أو أﻋﻀﺎء ﻣﺠﻠﺲ إدارﺗﻬﺎ أو ﻣﻮﻇﻔﻴﻬﺎ وذﻟﻚ وﻓﻘﺎ ﻷﺣﻜﺎم اﻟﻘﺎﻧﻮن.

Sincerely yours,

وﺗﻔﻀﻠﻮا،،،ﺑﻘﺒﻮل ﻓﺎﺋﻖ اﻻﺣﺘﺮام واﻟﺘﻘﺪﻳﺮ

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Asem Al Jazzazi
Company Secretary
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ﻋﺎﺻﻢ اﻟﺠﺰازي أﻣﻴﻦ ﺳﺮ ﻣﺠﻠﺲ اﻹدارة

Cc: Securities and Commodities Authority

ﻫﻴﺌﺔ اﻷوراق اﻟﻤﺎﻟﻴﺔ واﻟﺴﻠﻊ : ﻧﺴﺨﺔ إﻟﻰ

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