Dubai’s Union Properties to build AED 8 bln project in MotorCity

Dubai-listed Union Properties (UPP) on Monday announced plans for its flagship MotorCity development in Dubai, signing a memorandum of understanding with China State Construction Engineering Corporation (CSCEC) as the master builder.

The new project is estimated to cost AED 8 billion and is slated to be complete within four years, following its groundbreaking in first quarter next year, chairman Nasser Butti Omair bin Yousef said at a press conference on the sidelines of Cityscape Global in Dubai on Monday.

UP is looking at multiple sources of funding for the development, including direct project finance, bonds and sukuk, the chairman said. The firm has not decided on any finance instrument yet.

“We are in negotiations with banks,” Yousef said, adding that UPP might consider issuing a bond. He did not provide further details.

CSCEC said it would also consider participating in the funding.

“It is an alternative for China State to participate … we remain positive for the funding exercise,” said Yu Tao, president & CEO (Middle East) of CSCEC.

The project will comprise 44 new high and low rise buildings, more than 150 villas, and a range of residential, commercial, entertainment and hospitality facilities.

It’s expected to include more than 11,500 residential units, around 3,000 serviced apartments, 3,500 hotel rooms, and a total of 46,000 square meters of retail space and more than 300,000 sqm of office space.

In total, the project will see construction of around 18,000 units comprising residential apartments and villas, hotel rooms and serviced apartments.

In the first phase, UPP will develop a five-tower mixed-use development named Vertex, Yousef said.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com