Dh1.45bn building contract awarded in Dubai creekside project

The long awaited Jewel of the Creek has moved a step closer to completion after Habtoor Leighton Group won a Dh1.45 billion contract to build the next phase of the stalled scheme.

One of Dubai’s largest construction projects, the long awaited Jewel of the Creek, has moved a step closer to completion after Habtoor Leighton Group won a Dh1.45 billion contract to build its next phase.

Dubai International Real Estate (Dire), a private property developer, awarded the contract to build the next phase of its Dh3 billion hotel and apartment scheme in Port Saeed to HLG, the UAE unit of Australia’s biggest builder, the company reported yesterday.

The 123,955 square metre project is located on the Deira bank of Dubai Creek between Al Maktoum Bridge and the Floating Bridge, on a site where oil rigs were once made. It will include five hotels and serviced apartment buildings, each between 15 and 19 storeys tall, as well as a marina.

“The contract with Dire is of great significance to HLG,” said Jose Antonio Lopez-Monis, the chief executive and managing director of HLG.

Eventually the massive waterfront complex is expected to include 17 high-rise blocks clustered around a marina, including eight apartment blocks, four serviced apartment buildings, three office towers and two hotel towers. It will also feature a convention centre, recreation centre, shops and restaurants.

HLG said construction of the latest phase was scheduled to start in the third quarter and was expected to be complete in the third quarter of 2017.

First announced in 2005, the project was stalled by the global financial crisis in 2010.

But two years later, Dire awarded HLG a Dh480m contract to restart work, building a huge wall to keep the water out and four levels of basements under the creekside site.

Yesterday Nakheel also announced the award of a contract worth nearly Dh160 million to the Dubai based United Engineering Construction to build a 372-room Premier Inn hotel at Ibn Battuta Mall as part of a 28,000 sq metre expansion.

“One of the reasons that we are seeing so many hotel contracts being awarded in Dubai at the moment is that developers are gearing up for Expo 2020,” said Filippo Sona, the head of hotels at Colliers’ Dubai office. “Most of these schemes will take at least two to three years to complete, so you’re already looking at a completion date of 2017 or so and that only gives you a short time to stabilise the investment in the run up to Expo 2020. We expect the number of contract awards for hotel development to increase even more over the coming months.”

The Dubai listed Drake & Scull International yesterday said it had won a Dh110m contract to complete mechanical, electrical and plumbing work on the 20-storey Plaza Views apartment block in the Khalidiya district of Abu Dhabi.

Under the terms of the agreement, DSI will provide services such as water supply works, drainage, fire fighting and air conditioning for the Dh24m project, which is expected to be completed by end of 2016. Work started in 2011.


Follow us on Twitter @Ind_Insights

Published: May 28, 2014 04:00 AM


Editor's Picks
Sign up to:

* Please select one

Most Read