Monday 2 March 2009

UP opens door to merger

Union Properties, Dubai’s third-largest property developer, would welcome a merger if the partner brought a genuine advantage to its overall business operations, the company’s chief executive says.

Speculation of consolidation among Dubai’s biggest developers has mounted since the downturn hit the property sector, where prices have fallen by an average of 25 per cent since their peaks last September, according to a recent report by Morgan Stanley.

“I am a big supporter of mergers, especially at times like this,” said Simon Azzam, the chief executive of Union Properties. “If a merger makes business sense due to the synergy of the two businesses and adds a genuine advantage to the company’s overall operations, brings liquidity and shareholder benefits, then we would welcome such initiatives and discussions.”

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