MotorCity in Dh8b makeover

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Published: Mon 11 Sep 2017, 7:05 PM

Last updated: Thu 14 Sep 2017, 1:43 PM

Union Properties (UPP) on Monday launched a new masterplan for its MotorCity project where it will invest Dh8 billion over the next four years and tap multiple sources to finance it, its chairman said.
Addressing a press conference at Cityscape Global, chairman Nasser Butti Omair bin Yousef said the project will be developed in cooperation with China State Construction Engineering Corporation and the ground-breaking ceremony will be held in the first quarter of 2018.
Bin Yousef said the company will tap bank finance, bonds and sukuk for project finance. He said UPP will decide about the funding source by the end of this year as well as the amount of funds to be pumped in by the developer.
The Chinese partner could also assist in financing the project, bin Yousef added.
"Our participation is the guarantee of the project's completion. We believe we can bring in Chinese banks as well as insurance companies. We have excellent relationships with local and international banks," said Yu Tao, president and CEO of China State Construction. Last month, the Dubai-based developer booked provisions totalling Dh2.8 billion, which resulted in a net loss of Dh2.3 billion for the second quarter of 2017. "We are confident that with the developments we are planning this year, we will quickly bring back the recognised value for the long-term sustained growth of the company," bin Yousef had said in a statement.
The Dubai-listed Union Properties scrip booked gains on Monday, rising 0.9 per cent to Dh0.897 with 48.14 million shares changing hands worth Dh43.59 million.
The MotorCity will comprise 44 high and low-rise buildings with around 18,000 units in total. The project will house 150 villas, 11,5000 residential units, 3,000 serviced apartments and 3,500 hotel rooms. A total of 46,000 square metres of retail space and more than 300,000 square metres office space will also be developed.
The company will do the ground-breaking with the 'Vertex' - a mixed-used development with five towers and it will include a five-star hotel and serviced apartments.
- waheedabbas@khaleejtimes.com