Union Properties has announced the formation of its new investment arm, UPP Capital Investment.

The UAE-headquartered developer said in a statement that the new entity, formed as part of the company’s diversification strategy, will specialise in direct and indirect real estate investments.

UPP Investment Capital will also provide in-house expertise to support the group’s long-term strategy, Union Properties added.

Nasser Butti Omair bin Yousef, chairman of Union Properties, said: “While we remain steadfastly committed to our core specialisation of developing communities and bringing […] homes to the market, we are concurrently taking steps to diversify our revenue streams, access new markets, and capture new opportunities.

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“The formation of UPP Capital Investment is a continuation of this approach and the next phase of our ambitious strategy to position Union Properties for renewed success both in the UAE and overseas.”

UPP Capital is the third fully owned subsidiary formed by Union Properties. In September this year, the developer launched Union Malls and Al Etihad Hotel Management.

While the focus of Union Malls is to provide retail and leisure options within Union Properties developments, Al Etihad Hotel Management was established to develop and manage luxury hotels and furnished residences in Dubai.

According to the developer, the three subsidiary companies will each play an important role in its new MotorCity master plan, which includes 44 high- and low-rise buildings and more than 150 villas, as well as a number of commercial, entertainment, and hospitality facilities.