Asset valuations and cost of opening hotels hit Abu Dhabi developer
Abu Dhabi-based Aldar Properties has reported a loss for the fourth quarter of 2009 year as a result of asset revaluations and the cost of hotel openings.
The real estate developer made a fourth-quarter loss of AED562m ($153m), due to a revaluation of AED525m on its assets and AED170m of expenses linked to the opening of its hotels on Yas Island.
Aldar has also received financial support from the government. It has also sold the Formula One track and the Yas Island Yacht Club and associated buildings, and infrastructure to Abu Dhabi government-controlled investment vehicle Mubadala Development Company for an undisclosed sum.
Aldar is continuing to review its projects to suit changing market conditions and many are being redesigned. The schemes under development include Al-Raha Beach, Yas Island and the redevelopment of Central Market.
Analysts expect Abu Dhabi’s property market to perform poorly in 2010. Local consultant Landmark Advisory expects sale prices to remain stable during 2010, although it expects rents to continue to fall as more supply is delivered, and people working in Abu Dhabi choose to commute from Dubai (MEED 9:2:10).
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