Dubai’s Arabtec unit wins contracts worth Dhs622m from Damac

A subsidiary of Dubai contractor Arabtec has been awarded contracts worth a total of Dhs622m from developer Damac Properties, it announced on Monday.

Arabtec Construction won contracts worth Dhs353m for the construction works at two luxury residential towers, Rěva Residences and Věra Residences.

Both towers are located adjacent to each other in Business Bay and overlook the Dubai Water Canal.

The project comprises the construction of 125,178 sqm of luxury apartments across the two 30-storey residential towers.

The contract works will commence immediately with a construction period of 25 months, a statement said.

Arabtec Construction has also been awarded a Dhs269m contract to build luxury villas in Damac’s Akoya community.

The company will build the villas in the Aquilegia cluster comprising a built up area of more than 86,000 sqm.

The contract works will commence immediately with a construction period of 22 months, it added.

Last month, Arabtec confirmed that it is in the process of refinancing its debt as part of its wider restructuring plan.

In a bourse statement, the company said it had appointed Moelis & Co to advice and assist with “debt financial modelling, structuring options and engagement with finance providers”.

At the start of 2017, Arabtec began its three-phase restructuring programme and in June last year, the company raised Dhs1.5bn through a rights issue.

The company has now “achieved six consecutive quarters of profitability supported by positive cash from operating activities and a reduction in net debt”.

Read more: Dubai contractor Arabtec says refinancing process underway