* Q3 consolidated net profit 129.2 mln dirhams
* Quarterly revenue 803.4 mln dirhams, down 9.8 pct
* Merger talks with Aldar at advanced stage
DUBAI, Nov 7Abu Dhabi's Sorouh Real Estate
reported a 54.5 percent rise in third-quarter net
profit on Wednesday and said no decision has been taken so far
about its proposed merger with rival Aldar Properties.
The second largest developer by market value in Abu Dhabi
said it had net consolidated profit of 129.2 million dirhams
($35.2 million), up from 83.6 million dirhams in the prior-year
period, it said in a statement on Abu Dhabi's bourse.
Income was boosted after Sorouh reversed 40 million dirhams
in contingency provisions for its Sun and Sky towers, which have
Revenue for the quarter dropped to 803.4 million dirhams
from 890.4 million dirhams, down 9.8 percent.
The developer said its results were buoyed by revenue from
national housing projects - government-awarded schemes to build
homes for UAE citizens - which rose to 607 million dirhams from
68 million dirhams.
Sorouh said merger talks with rival Aldar, which were first
announced in March, are at an advanced stage.
"A decision will be taken by the Company's board of
directors as to whether or not to recommend the merger to the
company's shareholders in due course," the statement said.
The two firms had earlier said a decision would be reached
by last June.
Discussions between the two firms come as Abu Dhabi's
property market continues to face challenges as a huge supply of
high-end homes comes on the market this year. Property prices in
the emirate are expected to fall another 5 percent in 2012, a
Reuters poll in May showed.
Cash-rich Abu Dhabi, which is conducting a strategic review
of its state-linked entities, has spent more than $10 billion on
Aldar itself in the last two years as the emirate's property
market was hit by oversupply and falling prices, compounded by a
similar collapse in neighbouring Dubai.
Shares of Sorouh have climbed 57.7 percent this year buoyed
by the merger discussions with Aldar.
($1 = 3.6730 UAE dirhams)
(Reporting by Praveen Menon; Editing by Amran Abocar)