Top-three developer Union Properties mulls merger as a solution to cash troubles after Formula One theme park goes on hold
Speculation about mergers among Dubai's top developers is growing after Union Properties said it would welcome a merger.
Simom Azzam, chief executive of Union Properties, which is the third-biggest developer in Dubai, told the National newspaper he would be happy with a merger if it brought a genuine business advantage.
Last week Union put its 1.70bn dirham (US$460m) Formula One theme park on hold. It is now trying to find the money to finish the scheme, which is in Motor City in Dubailand.
Yesterday Union Properties' shares fell 5.3% to 0.72 dirhams on the Dubai financial market.
“We had previously arranged for financing but, unfortunately, due to the current crisis in the financial sector, those facilities have been stopped by the banks and hence we had to replan the project,” Azzam told the National.
Building predicted mergers among Dubai's developers in November.