Debt-laden real estate developer Union Properties has initiated talks with two foreign investors for the sale of its luxury Ritz Carlton Hotel, a report said, citing an industry source.

Earlier in February, Union Properties said several investors were interested in its luxury Ritz Carlton hotel, which it could sell if offered around $400 million.

The two foreign investors are from the Unites States and Qatar, the Emirates Business newspaper said.

The source told the newspaper that negotiations are in initial stages and both the parties have expressed their willingness to buy the property which is expected to be operational by the second half of the year.

The source did not comment on the price at which the deal may happen, the paper said.

The company reported a loss of 148 million dirhams ($40.30 million) in the fourth quarter hurt by provisions for contracting and property valuation. - Reuters