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 said.

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.

Union Properties is trying to raise finance to complete construction of a Dh1.69bn (US$460 million) Formula One theme park as part of its Dh10bn Motor City development in Dubai.

The National