Aldar, the property company that built the Yas Marina Formula One circuit, lost Dh1.5 billion in the first nine months of this year and is in talks with the Abu Dhabi Government about its cash needs, the company said today.
The loss follows a steep decline in property prices since the financial crisis, and the death of the off-plan property model which fuelled a five-year boom until 2008.
The deficit was "primarily due to lower gains from fair valuation of investment properties, provisions for bad debts and lower property sales recognised," Aldar said in a statement.
"Aldar is in the final stages of discussions with the Abu Dhabi Government regarding the company's cash requirements and anticipates that a framework will be concluded before the end of Q4 2010."
The company, whose work is largely involved with government development projects such as Yas Island and Raha Beach, is 55 per cent floated on the Abu Dhabi Securities Market. Mubadala, a government-owned strategic investment company, owns 19 per cent.