Ritz Carlton at the DIFC sold for Dh1.1bn

Union Properties has sold the Ritz Carlton hotel in Dubai International Financial Centre (DIFC) for Dh1.1 billion, the company said on Monday.

"The hotel was sold for Dh1.1bn. The proceeds generated from the transaction will be directed toward reducing our company's overall debt position and completing few remaining assets at our flagship development, the MotorCity," UP General Manager Khalid Al Jarwan said in a statement.

Emirates 24|7 broke the news earlier this morning that Union Properties had completed the sale of the hotel. The developer had set a target price of Dh1.5bn.

The Ritz Carlton Hotel, designed by world-renowned architects Gensler, is located adjacent to the Gate Precinct within the Gate Boulevard at the Dubai International Financial Centre (DIFC) and is connected to UP's Limestone ouse development. The hotel has 341 guest rooms and suites and 124 executive serviced apartments ranging from one- to four-bedroom. The hotel encompasses a total of 2,000 square metres of meeting and conference space, in addition to a 1,400 sqm Grand ballroom, meeting rooms and business centre.

In October, this website had reported that legal complexities were delaying sale deal for the hotel. "Although we have reached an agreement with an investor on the price, certain legal issues are now delaying completion of the deal," company Chairman Khalid bin Kalban had said.

In August, Union Properties said its second-quarter loss widened to Dh349.38 million from Dh227.95m a year ago.  The loss was mainly because the company wrote down the value of property amid falling real-estate prices in Dubai.

The developer has already halted development work on some of its projects including the $460m F1-X, a Formula One theme park in the MotorCity development, following the global financial crisis.