Dubai : Union Properties, Dubai's third-biggest developer by market value, said first-quarter profit rose 67 per cent on increased revenue from the handover of properties in its MotorCity project.
Net income climbed to Dh50 million from Dh30 million a year earlier, the company said in a statement. Revenue advanced 48 per cent to Dh846 million.
The company booked Dh70 million in provisions for losses on investment properties, the statement said.
Property developers in Dubai are focusing on finishing projects to boost income from completion payments after real estate prices dropped by more than 50 per cent from their peak in mid-2008. MotorCity, one of Union Properties largest developments with 38 million square-feet of land, includes homes, offices, sports facilities and a car racing track.
Bridge loan approved
Shareholders approved the extension of a Dh405 million bridge loan provided by Emirates NBD to March 31, 2014. Investors also agreed to extend the maturity of a Dh2.1 billion and a $188.4 million syndicated loan facility to December 31, 2013, the company said in a separate statement.
Union Properties is part-owned by Emirates NBD, the UAE's biggest bank by assets. The developer, which is trying to sell its Ritz-Carlton hotel at the Dubai International Financial Centre, said it has received at least seven bids for the property, a media report said citing chairman Khalid Bin Kalban.
Union Properties surged 5.8 per cent to Dh0.457 yesterday. That cuts the company's decline for this year to 33 per cent.
