F1-X theme park is the latest project to be suspended in Dubai due to the global financial crisis and lack of lending, said the developer in a statement.
Union Properties, The third largest property developer in Dubai is seeking a government bailout for its Formula 1 theme park as it cannot secure funding to finish the project. Union Properties has stopped work on the $460 million Park. Now it says if it fails to receive government cash or raise cash through a bonds issue it may cancel the project.
Union Properties said in a statement, “The decision was taken due to the current financial market and the drying up of liquidity from banks and financial institutions. The suspension will delay the opening of the Formula One entertainment concept until 2010”.
Penny Fischer, the marketing director for the F1-X said in his interview yesterday, “The project is founded on a strong business model that withstands recession whilst allowing for the future growth of Dubai”.
Penny added, “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”.
This week, Union Properties announced 12 per cent growth in net profit, which rose to Dh763 million in 2008, beating the prior year’s profits.
Union Properties told Reuters at the beginning of the month that Motorcity, the 80-storey Index and Limestone House were due to be completed and delivered in 2009 as scheduled.
The 70-acre park will be home to more than 20 major rides, exhibits and attractions, including three bespoke roller-coasters, all modeled on Formula One machinery. F1-X bills itself as Formula One ‘recreated and remixed’ and is designed to appeal to men, women and children alike, allowing them to get up-close to the technology, tour the F1-X paddock, complete with team motorhomes, and sense the sport’s drama and daring.