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28 February 2024

Positive 2010 outlook for Union Properties

By Reuters
Dubai developer Union Properties expects 2010 to be better than last year and will focus on selling some of its assets to help cover debts, its chairman said yesterday.

“I have a very positive outlook for 2010... We are in a much better position today than September,” said Khalid bin Kalban.

He earlier told Al Arabiya television the company was in a “good” financial position with regard operating revenue.

“Debt was due in 2010 and now its due in 2011,” Kalban said adding he expected the firm’s fourth-quarter operating profit to be around Dh200 million, and full-year profit of Dh450m.

Union Properties has debt of about Dh6.5 billion of which Dh700m is due in 2011, Kalban said.

The third-largest real estate developer by market value in Dubai will focus on the speedy delivery of units to its customers, he said.

The firm’s shares fell 5.6 per cent yesterday closing at its lowest level since February after hitting a seven-year intraday low.

The share fall extended losses after Credit Suisse slashed its price target on the stock to Dh0.03 from Dh0.80 on Monday.

Earlier in January, Union Properties said it was looking to sell some of its completed properties to raise liquidity and revenue.