<b>Union Properties</b> has been having a tough time in the last six months. In February, this became especially clear when it had to delay construction of their Formula One theme park because of cash flow issues. Just today, <b>EFG-Hermes</b> downgraded the company's stock rating to "reduce" from "neutral" because of the worsening economic environment and probability of more people defaulting on their purchases. To answer these comments, <b>Simon Azzam</b> , chief executive of Union Properties, who gave some interesting answers. Full article is coming tomorrow. - Law 9 of 2009 would actually improve liquidity for developers because it discourages people from defaulting, particularly if their projects are far along in construction, he said All of Union Properties' current projects are more than 80 per cent complete. - A potential deal with <b>Dubai International Financial Centre</b> (DIFC) to buy many of the offices in the Index Tower has fallen through, meaning Union Properties will have to rent them all out. Mr Azzam is positive that they will succeed because of the building's proximity to DIFC. - The company is still trying to raise between Dh2bn and Dh2.5bn through a bond issuance, but is having trouble because the market is "very dry now". - Mr Azzam said he has "absolutely no idea" about a potential merger with Deyaar Development. "I haven't been involved or informed of any issues relating to it," he said. <i><br/><br/>- </i> Union Properties is increasing its rental portfolio by four-fold because the sales market has slowed down to a trickle.