Dubai developer blames bank financing costs and a 'stagnation' in the real estate sector for 2019 performance
Dubai-based Union Properties on Thursday announced AED218.8 million ($59.5 million) 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 AED62.3 million in the previous year.
In a statement to Dubai Financial Market, the developer behind the vast Motor City project, said bank financing costs related to subsidiaries’ loans had “contributed significantly” to the 2019 losses, adding that they are "currently being settled".
The company added in the statement that despite the “stagnation” in the real estate sector, it was able to achieve revenues of AED535.5 million, down from AED762.1 million in 2018.
Last month, Union Properties announced that it is in the final stages of signing a memorandum of understanding with China National Chemical Engineering Limited (CNCEC) for the Dubai Autodrome expansion project valued at approximately $54.5 million.
The Dubai Autodrome, which opened in 2004, currently comprises a track length of 5.39km that is certified by the International Automobile Federation, and is equipped with six different configurations of internal and external tracks.