Saturday 25 January 2020

Aldar inks $816m deals for government developments

ABU DHABI, July 22, 2019

Leading UAE developer Aldar has awarded 14 contracts worth Dh3 billion ($816 million) to design and supervision consultants and contractors for the development of three major government projects in Abu Dhabi including Al Falah expansion, twofour54 campus and infrastructure works on Saadiyat island.

Following its appointment by the Abu Dhabi government to deliver Dh5 billion worth of landmark projects in the emirate, Aldar Properties on July 22 unveiled further details on the commercial and socio-economic impact that these projects are expected to deliver.

A Dh2-billion project was awarded to Aldar to develop the expansion of Al Falah housing community on behalf of the government, adding 899 new villas, each is 515 sq m area, to the community’s existing 4,898 villas. A mosque that can accommodate 2,000 worshippers will also be developed as part of the expansion.

The Abu Dhabi developer had roped in Trojan to deliver the units, which are currently being designed, and are set to be completed over the course of three years.

Another project is the state-of-the-art twofour54 campus on Yas Island, which Aldar was awarded. The Dh1-billion project will be home to a workforce of 10,000 industry professionals, and will become another focal point for investment flows into the capital, and its media and entertainment industry, said the developer.

Arabian Construction Company (ACC) has been appointed as the main contractor on the 99,500-sq-m project, which will have over 1,800 parking spaces and is scheduled to be completed in 2021, it stated.

The Dh2-billion worth of infrastructure works that Aldar will be delivering on Saadiyat Island, on behalf of the government, is set to strengthen the island’s integration with the rest of Abu Dhabi.

The work, which includes landscaping and the construction of infrastructure, transport-related structure and a fountain, is set to start immediately, and will be completed in phases between 2021 and 2022, said the statement.

Ghantoot, Gulf Contracting Company and NBHH as the main contractors for Phase One of infrastructure works, it added.

The three projects reaffirm Aldar’s status as the partner of choice for the Abu Dhabi Government. The long-term commercial value of these projects solidifies the franchise value of Aldar’s development management business unit.

The Dh5 billion project awards fall under Aldar’s third-party development management business, which has an existing portfolio of Dh10 billion worth of projects with the government of Abu Dhabi, in the emirate and overseas, that are nearing completion.

With the addition of these awards, Aldar is increasing its gross profit guidance for third-party development management business to Dh150 million per year over the next three to four years, marking a 50 per cent increase from Dh100 million per year previously achieved and adding to its existing guidance for the traditional homebuilding business that generates profits from the launch of 1,500 residential units per year into the market.   

CEO Talal Al Dhiyebi said: "The importance of these projects lies in the commercial and socio-economic value they will create for both Abu Dhabi and Aldar. Not only will they create a supply of flagship residential and commercial developments in the emirate, they are also set to create robust revenue streams for the construction sector and the broad supply chain it entails."

"Our track record as the developer of choice in Abu Dhabi, and as a strategic partner to the government, will play perfectly in the delivery of these projects and unlocking the long-term value they uphold. We look forward to putting our expertise and experience in what will further the attractiveness of both Yas Island and Saadiyat Island as world-class destinations, and Al Falah as one of the most sought-after housing communities in Abu Dhabi," nioted Al Dhiyebi.-TradeArabia News Service


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