Union Properties to issue bonds

Union Properties, a Dubai-based real estate developer that's building F1-themed parks, said its board approved plans to issue non-convertible bonds worth Dh2.5 billion to "strategic investors".

The board will decide on the terms and conditions of the bond, the company said in a statement to the Dubai bourse yesterday, without providing further details.

The company's nine-month net profit for 2008 jumped by 70 per cent to Dh801 million compared to Dh471m in the same period last year on back on revaluation and sales of investment properties. Chief Financial Officer Zaid S Ghoul had told media last year that the firm expects full-year profit for 2008 to reach between Dh850m and Dh900m from the previous estimate of Dh750m to Dh800m.

He also said the Union Properties was planning to acquire 50 million square feet of land in Dubai and was in talks with the government on the issue.

Handover of properties in MotorCity and DIFC is on schedule to start in 2009. The construction work at all developments is progressing as scheduled, the company said earlier.

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