Union Properties sells an asset and financial effect to be reflected in Q4

The chairman of the board of directors of Union Properties Company, a listed Company in Dubai Financial Market, said that the company sold an asset in October and the financial effect of this deal will be reflected on Q4’s financials.
 

The chairman didn’t refer to the deal’s details or value.

He added in a phone call with Al Arabiya TV that the company formed a provision for electric contracting work for an amount of AED 100m as the other party in this deal has not fulfilled its contractual obligations regarding the payment for this work.

This provision was formed in compliance with the conservatism approach after reporting a high net profit for the first nine months of the year; he added.

The chairman didn’t mention if this provision is related to Union Properties’ affiliate, “Thermo”, which is specialized in electrical and mechanical contracting works.

According to Argaam; the net profit of Union Properties increased 172% to AED 833.9m for the nine months ended September 30, 2014 and Q3’s net profit was AED 127.9m.