March 18- Union Properties is holding talks with regard to the provision of funds for the Dh1.68 billion ($460 million) F1-X Theme Park in MotorCity, Dubai, said the Chairman, Khalid bin Kalban. “Ernst & Young (E&Y) is on the job and talks are ongoing. However, we have not concluded any deal,” he added.
Kalban said that E&Y had been appointed in November 2009 to secure funding for the theme park. About $950 million has been invested in its development but at the moment, it isn’t a priority since there is no third-party commitments. In fact, subsidies are also being offered (about five to seven per cent) to investors for settling their final payment prior to the handover. “The discount is offered on a case-by-case basis, but nothing more than seven per cent is offered for settling the final payment,” he explained.
Meanwhile, Union Properties has closed the deal for two of its assets that were sold for Dh150 million and an announcement in this regard will be made soon. “All our old assets are on the block and we are willing to sell them if we get a good price,” added Kalban.
MotorCity development covers an area of 38 million square foot and includes five components – Dubai Autodrome, F1 Theme Park, Business Park MotorCity, Uptown MotorCity and Green Community MotorCity.
