By Gavin Gibbon
Dubai-based developer is counting the cost of loans to subsidiary Thermo after making 2019 loss
Dubai-based Union Properties has revealed that around $54.5m (AED200m) has been raised through financing for the expansion of Dubai Autodrome.
The project will see the tracks in the Kartdrome transferred to the Autodrome, with future investment planned for the Kartdrome to “increase the size of the company’s real estate portfolio,” the statement said.
It added: “According to the financial and technical studies prepared by MI Associated and APEX, this project will generate expected annual revenues of up to AED80m ($21.8m), in addition to the annual revenues from the facilities, restaurants, and auto services associated with the project.”
Last week, the company announced AED218.8m ($59.5m) net losses for 2019, blaming bank financing costs and a "stagnation" in the real estate sector.
The losses were compared to a net profit of AED62.3m ($17m) in the previous year.
Khalifa Al Hammadi, CEO, said the new executive management’s focus was on “striking a balance between trying to tackle items that causes losses in the financial statements and maximising and strengthening existing investments that generate profits to ensure the achievement of cash flows and revenues to meet the existing obligations and achieve optimal utilisation for these investments, whether by completing the new expansion in Autodrome or other projects or seizing any available investment opportunity within the fields of Union Properties’ subsidiaries”.