Union sells Ritz-Carlton at discount
Contract to be signed in the next ten days.
August 28, 2010 1:39 by Reuters
Union Properties has agreed to sell Dubai’s Ritz-Carlton hotel development for less than the asking price, reports Bloomberg.
Union Properties chairman Khalid bin Kalban said that the third biggest developer in Dubai plans to sign the deal in the next ten days. The buyer, located in Dubai’s DIFC, will not be identified until the contract is signed. “Everything has been agreed, all that remains is the drafting of contracts,” bin Kalban said.
According to Bloomberg, proceeds from the sale will be used to complete other Union Properties projects such as the 80-storey Index skyscraper and the Limestone House apartment building. The report says that Union Properties halted development work when the crisis hit, including on a Formula One theme park in MotorCity. The company reported its first full year loss in 2009, and in the second quarter of 2010 made even higher losses than in 2009.