February 26, 2009 / 3:48 PM / 10 years ago

Dubai's Union Properties theme park put on hold

DUBAI, Feb 26 (Reuters) - Dubai-based Union Properties UPRO.DU said on Thursday its has suspended its $460 million Formula One theme park due to the financial crisis and drying up of liquidity from banks.

“The suspension will delay the opening of the Formula One entertainment concept until 2010,” it said in a statement on the project which was scheduled to be completed in 2009.

“The project is founded on a strong business model that withstands recession whilst allowing for the future growth of Dubai,” Penny Fischer, marketing director for F1-X said in a statement.

“With construction more than 50 percent complete, the core of international expertise on the ground and operational plans virtually complete, it is hard to believe that a financial partner will not come forward in the coming days or weeks to capitalise on the opportunity,” Fisher said.

F1-X is part of Union Properties’ MotorCity project.

Dubai’s once-booming property sector has been hit hard by the financial crisis, which triggered a drop in property prices that has forced real estate firms to cancel or postpone projects and cut thousands of jobs.

Union Properties made a fourth-quarter loss of 37.6 million dirhams due to lower land sales. (Reporting by Jason Benham; Editing by Greg Mahlich)

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