By Andy Sambidge
Union Properties says world's first F1 playground is delayed due to credit crunch.
A $460 million plan to build a Formula One theme park in Dubai was put on hold on Thursday amid the global economic slowdown.
Union Properties and Formula One Administration Limited, owners of the Formula One brand, had signed a licence agreement back in 2006 giving the Dubai-based developer the exclusive rights to develop F1 Theme Parks around the world.
But the company on Thursday said its board had decided to suspend the construction and opening of its F1-X theme park project, which was scheduled to open in Dubai in 2009.
The decision, a company statement sent to Arabian Business added, was taken due to the current financial market and the drying up of liquidity from banks and financial institutions.
The suspension will delay the opening of The Formula One entertainment concept until 2010.
Penny Fischer, marketing director from F1-X said: "The project is founded on a strong business model that withstands recession whilst allowing for the future growth of Dubai.
"With construction more than 50 percent complete, the core of international expertise on the ground and operational plans virtually complete, it is hard to believe that a financial partner will not come forward in coming days or weeks to capitalise on the opportunity.”
F1-X is scheduled to be the first family entertainment concept of its kind ever developed.
The project is part of Union Properties' MotorCity development, which in itself is part of Dubailand.
The development is spread over five million square feet and will include a hotel, F1 Museum, F1 Pavilion, various F1-themed thrills from roller coasters to F1 grid experiences, simulator rides plus extensive retail and dining options.
how is that possible. Every project in Motor city was sold on the basis of this attraction, which is Formula 1 theme park?? so every developer should go back and refund the money to its investors. What's RERA doing about such issues???