UAE developer Manazel Real Estate is to retender two major construction contracts on its Building Materials City project in Abu Dhabi, after terminating its contracts with local firm Fibrex.
Sources on the project tell MEED that Manazel is seeking contractors to finish the work due to delays on the scheme.
“The decision was made to terminate [Manazel’s deals with] Fibrex,” confirms one source with knowledge of the project.
The deals with Fibrex were worth AED4.8bn ($1.3bn) in total, but the value of the new deals is unclear as some of the work has been completed. When Fibrex won the two contracts in late 2008, it bid AED1.1bn to build two office towers and AED3.7bn to build six residential towers.
The Building Materials City development is in the Mohammed bin Zayed City area of Abu Dhabi. The plans for the project cover three phases of residential, office and retail development.
The source says Manazel has yet to select contractors to take part in the new tender. The original bidders included Dhabi Contracting, Al-Faraa Group and United Engineering Construction, all local.
According to Fibrex’s website, Manazel owns a 35 per cent stake in the company and the two firms share a chairman, Mohammad Mehanna al-Qubaisi.
Fibrex, which is headquartered in Abu Dhabi, is also working on the AED2.5bn construction contract for Manazel at its Reef Villas development near to Abu Dhabi International airport.
Manazel could not be reached for comment. Fibrex declined to comment.