Emaar issues letters of intent for $1.2bn of construction contracts

19 March 2014

Shopping precinct and Fountain Views developments will be built in the Downtown District

Local developer Emaar Properties has issued letters of intent (LoI) to Lebanon’s Arabian Construction Company (ACC) and the local Dutco Balfour Beatty for two construction contracts totalling AED4.4bn ($1.2bn).

ACC was sent a LoI for the estimated AED3bn contract to build the Address Residence Fountain Views development. The main construction package involves building three towers including a 220-metre-tall, 60-storey building.

The project is one of the largest building schemes in Dubai and the contract will be one of the largest construction deals awarded in Dubai since 2008.

Emaar received bids for the contract last year. The other bidders were the local/UK Al-Futtaim Carillion, Canada’s Brookfield Multiplex and a joint venture of Athens-based Consolidated Contractors Company and the local/UK Dutco Balfour Beatty.

The second LoI was sent to Dutco Balfour Beatty for the estimated AED1.4bn contract to build an extension to Dubai Mall.

That contract involves building a fashion avenue next to the existing mall, the lake, Burj Khalifa and the existing Address hotel, offering 75,000 square metres (sq m) of retail space and about 25,000 sq m of parking.

Emaar received bids from contractors in December 2013. The other bidders included Al-Futtaim Carillion and CCC.

Emaar has been busy tendering construction work in its Downtown District since mid-2012. It recently tendered the contract to build the Burj Vista towers. Companies have been invited to bid by 25 March for the contract that involves building two residential towers. One tower will have 65 storeys. The other will have 20 levels.

In November 2013, it awarded CCC the contract to build the Dubai Modern Art Museum and Opera House District. In January 2013, Emaar awarded Brookfield Multiplex the contract to build the Address, The BLVD hotel and residential tower.

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