UAE-based Arabtec Holding’s construction unit won two contracts totalling more than Dh600 million ($163m) for Damac Properties residential projects in Dubai.
The new wins are a Dh353 million ($96m) contract to build two residential towers and a Dh269m contract for luxury villas in Damac’s Akoya community, Arabtec said in separate filings to the Dubai Financial Market, where its shares are listed, on Monday.
Arabtec Construction has already undertaken work for Damac in the past. “The onboarding of repeat business from our clients is testament to the strength of our relationships and our commitment to delivering projects in core competencies and core markets,” said Hamish Tyrwhitt, group chief executive of Arabtec, in the statement.
The first job comprises building around 125,000 square metres of luxury apartments across two 30-storey residential towers, Rěva Residences and Věra Residences, in Dubai’s Business Bay district, overlooking the newly opened Dubai Water Canal.
Work commences immediately with a targeted construction period of 25 months, Arabtec said.
The second job is to build villas in the Aquilegia cluster of Damac’s 55 million square feet Akoya [moved it here] mixed-use community in Dubai, which has an 18-hole golf course, retail, entertainment and hospitality. Construction of the villas will also commence immediately, and are scheduled to be completed within 22 months.
Last week Arabtec secured a Dh222m contract to build 352 villas at Dubai Properties’ Amaranta project at the Villanova scheme in the emirate. Dubai Properties is the real estate division of Dubai Holding, the Ruler of Dubai’s investment vehicle.
Dubai Properties’ Villanova scheme is a residential community in Dubailand comprised mainly of townhouses. The Akoya contract “marks another residential villas project, demonstrating Arabtec Construction’s competency in the sector”, Mr Tyrwhitt added.
Higher oil prices this year have prompted an uptick in construction activity across the UAE and boosted Arabtec’s earnings. The contractor more than doubled its profit year-on-year in the third-quarter of this year to Dh181m, thanks to project wins and an ongoing reorganisation of its business. Revenue grew 12.7 per cent to Dh7.2bn.