Talks on to secure $460m for F1-X theme park

The $950m MotorCity development covers an area of 38 million square foot. (EB FILE)

Union Properties is continuing talks for sourcing funding for the $460 million (Dh1.68 billion) F1-X theme park in MotorCity, but no deals have yet been concluded, its chairman said.

"Ernst and Young (E&Y) is on the job and talks are ongoing. However, we had not concluded any deal," Khalid bin Kalban, Chairman, Union Properties, told Emirates Business.

In November 2009, he told this newspaper the company had appointed E&Y on the job to secure funding for its F1-X theme park.

The $950m MotorCity development covers an area of 38 million square foot and includes five components – Dubai Autodrome, F1 Theme Park, Business Park MotorCity, Uptown MotorCity and Green Community MotorCity.

The developer has invested Dh950m for the development of the theme park, but the project is currently not on its priority list as there is no commitment to third parties.

According to Kalban, the company is also offering discounts in a narrow range of five to seven per cent to property owners/investors for settling their final payment ahead of handover.

"The discount is offered on a case-by-case basis, but nothing more than seven per cent is offered for settling the final payment."

He said Union Properties is closing the deal for two of its assets that were sold recently for Dh150m and will be making an official announcement soon.

"All our old assets are on the block and we are willing to sell them if we get a good price."

The developer is also in talks to sell the Ritz Carlton hotel in Dubai International Financial Centre and is in active negotiation with a number of parties. Kalban said earlier the firm expects recurring revenues from its leasing portfolio to more than double to Dh500m from 2010 onwards from the current Dh160m. Union Properties is 49 per cent owned by Emirates NBD, which is 56 per cent owned by the government.

 

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