Nakheel Awards Three Construction Contracts Worth Dhs500m

Dubai developer Nakheel announced that it has awarded three construction contracts, with a combined value of almost Dhs563 million, for projects at its Al Furjan and International City communities in Dubai.

Two contracts are for the construction of 401 villas and terraced houses at Al Furjan community. The first, covering 249 homes and valued at Dhs310.6 million, was awarded to Ginco General Contracting, while United Engineering Construction won the second contract for 152 homes, valued at Dhs215.4 million.

Under both contracts, construction is due for completion in 18 months, Nakheel said in a statement.

The company also awarded a Dhs36.8 million contract to Metac General Contracting Company to build a new community retail centre at International City. Construction of the 79,000 square foot shopping and dining facility is scheduled to take 12 months, it said.

The community centre will have 24 shops and six restaurants and coffee shops. Two-thirds of the available leasing space is already booked, the developer said. The facility targets residents in International City and Warsan Village, Nakheel’s new gated community of 940 townhouses.

Nakheel has been mirroring Dubai’s booming property market, and announced a 27 per cent hike in 2013 net profit to reach Dhs2.57 billion in 2013, with revenues up 20 per cent.

Since restructuring in 2011, the company has paid around Dhs13 billion to contractors and suppliers, interest of Dhs1 billon to banks and profit payments of around Dhs1 billion to sukuk holders, it recently said.

The company has also recommenced work on all 10 of its ‘near term’ projects, delivered around 8,000 units across various communities, expanded its retail offering and diversified into the hospitality and leisure sector, with the first hotel due to open this year.

It has also launched several new projects and currently has over 4,000 units with an estimated sale value of Dhs13 billion in the development pipeline.

The company recently revealed that it plans to launch new projects worth between Dhs6 to Dhs8 billion in 2014.