Union Properties Quarterly Loss Trebles, Revenue Falls (Update1)

11/11/2010 00:00 AST

Union Properties PJSC, Dubai's third-largest real-estate developer by market value, said its third-quarter loss almost trebled as revenue from property management and sales fell.

The net loss for the quarter widened to 451.8 million dirhams ($123 million) from 152.3 million dirhams a year earlier, while nine-month losses more than doubled to 751 million dirhams, Union Properties said in a statement on the Dubai bourse today. Revenue from property management and sales and other operating activities fell by more than half to 545.2 million dirhams from 1.3 billion in the year-earlier period.

Union Properties halted development work after credit dried up in the financial crisis and more customers defaulted. In 2009, the company reported its first full-year loss and suspended work on F1-X, a Formula One theme park in the MotorCity development at the Dubai Autodrome race track.

The developer has liabilities of 811 million dirhams, which include 325 million in short-term borrowings and 1.2 billion in long-term debt, Union Properties said in the statement.

Union Properties will focus on completion of The Index Tower and The Limestone House in the Dubai International Financial Center during the fourth quarter, according to the statement.

The company said sufficient funds will be made available to complete its existing projects, which will be profitable. Union Properties said funds may be generated from the sale of some of the group's non-core assets.

The developer said on Nov. 8 that it sold the Ritz Carlton Hotel at the Dubai International Financial Center for 1.1 billion dirhams. The proceeds will be used to reduce overall debt and complete work at Motor City development, it said. Union Properties had wanted 1.5 billion dirhams for hotel.

Bloomberg