Arabtec shares rise 6% on Aldar contract win
Contractor lands $544m deal to build 1,017 luxury villas on Yas Island
Shares in Arabtec on Monday rose by 6% on news that the Dubai-listed builder has won a $544.5 million contract from developer Aldar.
Arabtec Construction is to build 1,017 villas at the West Yas residential project on Yas Island, the Abu Dhabi-based Aldar Properties said.
The news saw Arabtec’s share price soar to AED 1.23 in trading on the Dubai Financial Market.
The contract represents the final package to be awarded for the West Yas development, Aldar said. It follows the infrastructure and public realm, school, clubhouse, retail and mosque packages that were previously awarded.
“We are very pleased with the level of interest that has been shown in West Yas. Demand has been very strong, which endorses our strategy of delivering high quality properties in prime locations,” said Talal Al Dhiyebi, chief development officer at Aldar Properties, in a statement released to the Abu Dhabi Securities Exchange.
“We now move to the villas’ construction phase of the development with the appointment of Arabtec and look forward to its completion and the positive impact it will have on Yas Island and the Abu Dhabi market.”
The West Yas project is located along Yas Island’s natural mangroves and will feature 1,017 four and five-bedroom luxury villas. Prices are expected to start from $1 million. The development is a non-gated community with no service charges, and will include a range of community facilities, including a mosque built for 2,000 worshippers, two schools – one of which will be operated by Aldar Academies – and a retail centre.
Some of the other facilities offered to residents include a petrol station, extensive landscaping and greenery in open public spaces and sports facilities.
Aldar said that it expects the handover of villas by the end of 2017. Arabtec Construction’s largest shareholder is Abu Dhabi state fund Aabar.
