Dubai's Union Properties posts $62m Q2 loss

UPDATE 1: Developer gets hit by a decline in the value of its investment properties.
Dubai's Union Properties posts $62m Q2 loss
By Soren Billing
Thu 13 Aug 2009 03:27 PM

Dubai-based developer Union Properties on Thursday reported a second quarter loss of AED228m ($62.1m), compared with a profit of AED317.7m in the year-earlier period, as the company was hit by a decline in the value of its investment properties.

The Dubai index heavyweight made a net loss of AED197.8m in the first half of the year, compared with a profit of AED556.1m, on revenue that was unchanged at AED1.86bn.

The slowing property market lowered the value of the firm’s investment properties by AED304m in the first half, compared with a gain of AED231 in the first half of 2008.

The company also said that since the end of the first half it has entered into an agreement to restructure AED956m of its short term debt facilities into longer term facilities.

Total consolidated bank debt stood at AED6.3bn at the end of the first quarter, implying an overall consolidated debt to assets ratio of 35:65, it said.

Union Properties said in July that it will hand over the remaining residential units of its Dubai’s Motor City, a 38m sq ft motor sport-themed project, by the end of the year.

The firm has already completed more than 850 units within 20 buildings in the Uptown Motor City segment, and 130 townhouses and terraced apartments in Green Community MotorCity, it said in July.

It has also said it expects to complete an 80-storey mixed-use tower and a residential building in the Dubai International Financial Centre(DIFC), by the end of the year.

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