- The biggest project award by Value in Arabtec’s History,
- The contract Award includes 14 residential towers in various locations in Abu Dhabi,
- The 7 new hotels and serviced apartments are the latest addition to Arabtec’s extraordinary hotel and hospitality portfolio in the UAE and the region.
Arabtec has announced that it has signed a memorandum of understanding with shareholder Aabar Investments which will see it design and build 37 towers in Abu Dhabi and Dubai under a deal worth $6.1bn (AED22.44bn).
Arabtec said the deal was the biggest in its history and one of the largest in the real estate sector in the region. It will see it build nine mixed-use towers at developer Tomouh’s City of Lights project at Al Reem Island in Abu Dhabi containing 900,000ft2 of space, and a further four mixed-use towers elsewhere on Reem Island.
The firm will also build fourteen residential towers, including two in Rawdhat Abu Dhabi (on a 64,673ft2 plot), seven at Al Raha Beach (1mn ft2 plot), three in Maysan (160,000ft2) and two at Shams (200,000ft2).The firm will also build a five-star hotel under the Hard Rock International brand at Abu Dhabi’s corniche, which will be the first Hard Rock-branded hotel in the region.
In Dubai, the firm will build three mixed-use towers in Business Bay and six new hotel towers and serviced apartments in the Aljaddaf district. Arabtec said construction work on the projects would begin this year and all of them will be delivered by 2020.Aabar Investments owns a 21% stake in Arabtec Investments which it bought in June 2012 in a $225.3m deal.
Commenting on the deal, Aabar Investments chairman HE Khadem Al Qubaisi, said: “We are truly proud that we are the principal shareholder in Arabtec which has become one of the leading business groups in the region, highly credited by clients for its professionalism and exceptional experience in project management.
“It was only natural that we award this contract to them, and this is just the beginning of what we hope will be long-term cooperation between us.“We will assign all construction work in Aabar’s $20bn real estate portfolio in the UAE, USA, Morocco, Jordan, Serbia and other countries to Arabtec. This is in recognition of what Arabtec has achieved, under the able leadership of Hasan Ismaik, and we will not spare any effort to support Arabtec and it’s ambitious vision.”
Arabtec CEO Hasan Abdullah Ismaik added: “We are thankful to Aabar, represented by its Chairman HE Khadem Al Qubaisi, for their continued support and trust. A good part of the credit for what we have achieved so far goes to Aabar and we are particularly proud that the biggest project in our history comes from Aabar.”
He added: “Our first major awards in 2014 are also early indicators of a continued uptrend in the property and hospitality markets in the UAE. Our growing backlog has now become a major benchmark of the speedy recovery of the sector. We expect to see good results with efforts to diversify into higher-margin sectors in association with international partners.”
Via : Arabtec Holding Media Report
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