By Joanne Bladd
Property handovers push Dubai’s third largest developer to AED82m profit
Dubai’s Union Properties saw first quarter profit jump 64
percent aided by the handover of units at some of its key properties, the
company said Monday.
The third largest developer in Dubai said net profit for the
three months to March 31 was AED82m ($22.32m), up from AED50m in the year-earlier
The rise in profits was primarily due to the ongoing
handover of properties at Union’s Index Tower and the Limestone House in Dubai
International Financial Centre.
Revenues rose to AED1.5bn, a rise of 75 percent on the same
period in 2010, the company said in a statement to Dubai bourse.
“All segments of the business have continued to perform well
in line with expectations,” the statement said.
The company booked provisions worth AED65m for loss of
valuation of some properties.
House prices in Dubai declined more than 60 percent from
their 2008-peak amid a global economic crisis that caused lending to dry up and
speculative demand to decline, Deutsche Bank AG said in February.
Investment bank Rasmala said in March that house prices
across the UAE were set to decline a further 25-30 percent over the next two
years due to a rising oversupply of property.
Union Properties finalised the sale of its Ritz Carlton
hotel in Dubai for AED1.1bn in November last year. It used the proceeds to
reduce debt and complete remaining projects.