Dubai F1 theme park suspended
Yahoo Sport reports: Plans to construct a Formula One theme park as part of a massive motorsport-orientated development in Dubai have been put on hold as the global economic crisis reaches the Middle East.
"The project is founded on a strong business model that withstands recession whilst allowing for the future growth of Dubai," F1-X marketing director Penny Fischer confirmed, "With construction more than 50 per cent complete, the core of international expertise on the ground and operational plans virtually complete, it is hard to believe that a financial partner will not come forward in coming days or weeks to capitalise on the opportunity."
Union Properties borrowed around $680m for the project, but reported as long ago as June 2007 that it would need more loans. Although well advanced, construction has been halted as Union Properties - which backs cars in the Middle East-based Speedcar Series - refocuses on its main business of managing and renting property. The company, which earlier this week announced a twelve per cent growth in net profit, insists that nearby developments, including Index and Limestone House, were due to be completed in 2009 as scheduled.
"[F1-X] was a borderline project when the market was booming," Real Capital Analytics MD Dan Fasulo told financial publication Bloomberg, "The world has changed. There is nobody willing to fund these projects anymore."
Property prices in Dubai have fallen by around 25 per cent since September, and lending in the UAE is slowing as much as in other, more widely-reported, areas of the world.
View the full article on Yahoo Sport: Dubai F1 theme park suspended
Posted by: Nina Turner