Union Properties has pushed back the completion date of Limestone House and Ritz Carlton Hotel at Dubai International Financial Centre to year-end, citing restricted assistance from banks, Emirates Business has learnt.
In a letter e-mailed to investors, the Dubai-listed developer said: "The overall effect of the financial crisis and difficulties facing Union Properties and those involved in the completion of our developments has resulted in a delay in the original anticipated completion date. Taking all things into consideration today, the expected completion date of Limestone House is now revised to the end of 2009. Moreover, at this stage we cannot guarantee this date, this is just our best estimate based on the present stage of completed works and the information we are getting from those involved.
"The position also affects the opening of the Ritz Carlton Hotel, which has also been delayed, which is most disappointing. This too is now expected around the end of the year."
According to realtors, Limestone House was set for completion by May 2009.
According to Ritz Carlton website, the hotel will have 341 guestrooms and suites including two Ritz-Carlton Suites, 124 serviced apartments, a signature Thai fine-dining restaurant, a French brasserie, a steakhouse and a lobby lounge. According to its website, the hotel will be opening in early 2010.
Union Properties did not reply to questions e-mailed by this newspaper.
According to the company, "Union Properties has suffered from restricted assistance from banks as they are freezing the release of funds making cash flow critical. At the same time, the contractors, suppliers and consultants involved in the construction of our developments are suffering themselves and this is affecting their progress."
Additionally, the developer said: "We understand that this will come as a disappointment to many, as we ourselves are unhappy with the present situation. However, we feel it very necessary to be as open as we can at this stage. Obviously, it is in interests of both of us to complete this iconic building and handover your units at the earlier possible opportunity."
In February, Union Properties Chief Marketing Officer Michael Jackson said MotorCity, Index and Limestone House were due to be completed and delivered in 2009 as scheduled, with the company not planning to announce any new projects under the current market situation. The then chief executive officer Simon E Azzam had told this newspaper in March that the developer was looking to approach the government for financial assistance. Azzam resigned on Sunday.
"We would love to be part of the support fund. Although we have not approached the government directly, I am of the view that loans need to be given directly to the industry, mainly to publicly-listed real estate companies, which are more transparent and adhere to regulations," he had said.
Union Properties is 49 per cent owned by Emirates NBD, , which is 56 per cent owned by the government. Its shares closed at Dh1.2, down 6.3 per cent yesterday.
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