The share price of Union Properties fell 10%t after Credit Suisse said the developer’s debt burden had almost wiped out its value.
Investors sold the issue after the bank cut its price estimate for the stock to just 3 fils. It closed yesterday at Dh0.54 after falling by the most allowed in a single session under Dubai Financial Market rules.
The company has lost about 90% of its value over the past 18 months as the property downturn in the emirate forced developers to delay and cancel projects.
Union Properties is Dubai's second-largest developer by assets and the company behind the Formula One-themed MotorCity, which has been hit by a series of delays and setbacks.