BIG DEAL: Arabtec wins $6.1bn Aabar contract
Dubai, February 2, 2014
Dubai-based construction firm Arabtec said it would build 37 major buildings worth 22.44 billion dirhams ($6.1 billion) for Abu Dhabi state fund Aabar in Abu Dhabi and Dubai, in a fresh sign of the dramatic recovery of the local real estate markets.
Arabtec said the deal was one of the largest ever in the region's real estate sector and Arabtec's biggest by value.
In a bourse statement on Sunday, Arabtec also quoted Aabar Properties chairman Khadem Al Qubaisi as saying Aabar would in future assign all construction work in its $20 billion real estate portfolio around the world to Arabtec.
That portfolio includes projects in the UAE, the US, Morocco, Jordan, Serbia and other countries. Aabar, which also owns stakes in companies such as commodities trader Glencore and Italian bank UniCredit , holds about 22 percent of Arabtec.
The new contract is to build mixed-use, residential, and hotel towers in Abu Dhabi and Dubai, including nine mixed-use towers in the Tomouh City of Lights development in Abu Dhabi, with a total plot area of 900,000 sq ft and a built area of 14,000,000 sq ft. In addition, Arabtec will construct four mixed-use towers in Reem Island development.
The residential component of the memorandum includes 14 towers: two in Rawdhat Abu Dhabi, (total plot area of 64,673 sq ft); seven in Al Raha Beach (total plot area of 1million sq ft), three in Maysan (total plot area of 1.6 million sq ft), and two in Shams (total plot area of 200,000 sq ft), with a total plot area of 1.9 million sq ft and a built area of 14 million sq ft.
The memorandum signed by Arabtec and Aabar also includes the construction of a five star hotel under the management of “Hard Rock International” in prime location on the Abu Dhabi Corniche, with a total plot area of 18,858 sq f. The hotel will be the first Hard Rock Hotel in the region.
In Dubai, Arabtec will build three mixed-use towers in Business Bay, and six new hotels and serviced apartment towers in Aljaddaf district, adjacent to the Culture Village development. Occupying a total plot area of 300,000 sq ft and a built area of 3 million sq ft, these include a 5 star hotel to be managed by Swissotel, a 4-star hotel managed by Hilton, a 3-star hotel managed by Park Inn, as well as three serviced apartment buildings to be operated by Fraser Suites.
The new hotels in Aljaddaf district are the latest addition to Arabtec’s hotel and hospitality portfolio which includes Abu Dhabi’s iconic seven-star Emirates Palace Hotel, as well as a host of towers and resorts for world-renowned hospitality brands in the UAE, including the Palazzo Versace in Dubai, the Fairmont Hotel Abu Dhabi and Serviced Apartments, and the Tiara hotel on Palm Jumeirah in Dubai.
Hasan Abdullah Ismaik, managing director and CEO of Arabtec Holding, said: “We are already off to a strong start of the year. This project award to the tune of Dh22.440 billion, and last week’s Dh5.7 billion contract for themed entertainment resort in Jordan, are strong signs that our robust performance in 2013 will gain further momentum in 2014. We look forward to another exceptional year for Arabtec.”
Construction work is scheduled to begin in the first quarter of 2014 and all projects will be delivered before 2020. - TradeArabia News Service & Reuters