Union Properties, a leading real estate developer in the UAE, said one of its units has acquired a strategic 5.68 per cent stake in top Egyptian real estate developer Palm Hills Developments as part of its regional expansion plan.

A major player in the region, Palm Hills Developments focuses mainly on developing residential and integrated commercial developments, small cities and urban communities, hotels and luxury resorts besides land reclamation and cultivation.

The stake was acquired through Union Properties' investment arm, UPP Capital Investment, which was created last year to carry out direct and indirect real estate investments, said the company in a statement to Dubai Financial Market.

The acquisition is part of the company's strategic plan to boost its investments in and out of the UAE, besides diversifying its revenue sources and expanding its business and entering new markets and sectors, it stated.

Established in 2005, Palm Hills Developments now owns one of the largest land banks in Egypt with a total area of 41 million sq m and currently has a portfolio of 26 real estate projects.

On the stake buy, group CEO Ahmed Yousef Khouri said: "Acquiring this strategic stake in the top Egyptian real estate developer marks another step in our ambitious expansion plan."

"As Union Properties enters a new growth phase, we are strengthening our expanding investment portfolio by acquiring significant assets that are diverse, dynamic and successful. Palm Hills has the ability to continue its steady growth as an important player in the regional real estate sector," he added.-TradeArabia News Service