Union Properties posts $135m net loss in 2009

Dubai's third largest developer says revenues last year totalled AED4.4bn.
Union Properties posts $135m net loss in 2009
PROJECTS PLANS: Motorcity in Dubai is one of Union Properties key projects.
By Andy Sambidge
Mon 15 Feb 2010 10:14 AM

Dubai's Union Properties reported on Monday a net loss of AED498 million ($135m) for 2009, compared with a net profit of AED763.1m the previous year.

In a statement posted on the website of the Dubai Financial Market, the company said 2009 revenues totalled AED4.4bn and profits before provisions for contracting and property valuation were AED373m.

Its total asset as at the end of December 2009 were AED17.5bn, the statement added.

The developer made a loss of AED148m in the fourth quarter, according to calculations made by Reuters from previous statements.

The firm's shares closed 3.9 percent lower on Sunday.

The third largest developer by market value in the emirate, where property prices have tumbled by some 50 percent since their peaks, has been hit hard by the financial downturn heightening concerns over its debt position.

Speaking to Reuters last month, Kahlid bin Kalban said he was upbeat about prospects for 2010.

He said: "We are in a much better position than three months ago ... From a liquidity point of view, debt rescheduling, and cash, we are in a much better position."

Kalban said the firm's $1.77 billion debt position, which it was due to begin paying back in 2010, is now due in 2011.The first payment is about $190.5 million.

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