Union Properties posts 67% profit increase in Q1

Net income up to $13.6m from $8.2m a year earlier; revenue advanced to $230m.
Union Properties posts 67% profit increase in Q1
BETTER FIGURES: Net income climbed to $13.6m from $8.2m a year earlier, according to a company statement on the Dubai bourse Sunday.
By Andrew White
Sun 02 May 2010 03:13 PM

Union Properties, Dubai’s third-biggest property developer by market value, said first-quarter profit rose 67 percent as revenue increased from the handover of properties in its MotorCity project.

Net income climbed to $13.6m from $8.2m a year earlier, according to a company statement on the Dubai bourse Sunday. Revenue advanced to $230m from $156m, the company added.

MotorCity is one of Union Properties' largest developments with 3.5 million square metres of land, includes homes, offices, sports facilities and a car racing track.

Union Properties is part-owned by Emirates NBD, the UAE’s biggest bank by assets, which has provided a $110m bridge loan to March 31, 2014.

Last week, it was announced that repayments on the real estate company’s $1.8bn debt, which were due to begin this year, would be delayed until next year.

Union Properties is currently trying to offload its hospitality assets to raise cash. These include the Ritz-Carlton hotel, due to open at Dubai International Financial Centre (DIFC) this month.

The Ritz-Carlton is priced at $408m, and it was reported yesterday that the hotel has attracted at least seven possible buyers.

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