Deal with Aabar Properties is Arabtec’s biggest project by value and one of the largest in the real state sector in the region
Arabtec Holding, the UAE-based engineering and construction group, has announced that it will design and construct 37 towers, with a total contract value of $6.09bn, in Abu Dhabi and Dubai for Aabar Properties.
The memorandum of understanding was signed with the real estate development subsidiary of Aabar Investments. It is considered to be the largest in the real estate sector in the region, and is Arabtec’s biggest project by value. The deal was signed on behalf of Arabtec Holding’s subsidiary, Arabtec Construction.
According to the terms of the deal, Arabtec Construction is to build 37 mixed-use, residential and hotel towers in Abu Dhabi and Dubai. The deal also includes the construction of nine mixed-use towers in the Tomouh City of Lights development in Abu Dhabi, with a total plot area 900,000sqft and a built up area of 14,000,000sqft. In addition, Arabtec will construct four mixed-use towers on the Reem Island development.
The residential component of the memorandum includes fourteen towers: two in Rawdhat Abu Dhabi, (total plot area of 64,673 sqft); seven in Al Raha Beach (total plot area of 1,000,000 sqft), three in Maysan (total plot area of 160,000 sqft), and two in Shams (total plot area of 200,000 sqft), with a total plot area of 1,900,000 sqft and a built area of 14,000,000 sqft.
The memorandum 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 sqft. 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 sqft and a built area of 3,000,000 sqft, 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.
Khadem Al Qubaisi, Chairman of Aabar Properties 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 USD20 billion 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 its ambitious vision.”
Hasan Abdullah Ismaik, Managing Director and CEO of Arabtec Holding, added: “We are already off to a strong start of the year. This project award to the tune of $6.09 billion, and last week’s $1.55 billion contract for a themed entertainment resort in Jordan, are strong signs that our robust performance in 2013 will gain further momentum in 2014.”
“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.”
Construction work is scheduled to begin in the first quarter of 2014 and all projects will be delivered before 2020. Arabtec and Aabar Properties are in the final stages of signing definitive agreements, including mechanisms for the implementation of the projects.