By Staff writer
Dubai's third biggest developer says result due to losses on valuation of properties
Dubai’s Union Properties reported a net loss of AED751m ($204.4m) for the third-quarter due to losses on valuation of properties, the developer said in a statement Thursday.
The company, the emirate’s third largest developer, said revenue for the first nine months of the year more than halved to AED2.103m, compared to AED3.207m for the same period in 2009.
“However, all business segments continued to perform well, and lower operating costs reflected positively in improved gross margin of 20.6 percent at end of Q3 2010, up from 16.6 percent at the end of Q3 2009," the company said.
According to a statement released on the Dubai Financial Market, the company’s total consolidated bank debt at the end of Q3 stood at AED6.5bn.
Earlier this week, the developer completed the sale of its Ritz Carlton hotel in Dubai for AED1.1bn.
The firm is looking to deliver two properties in the Dubai International Financial Centre (DIFC) – The Index Tower and The Limestone House – before the end of the current financial year.