Local property developer Nakheel has signed two contracts for construction work on retail projects in Dubai.

The largest contract, worth an estimated AED600m ($163m), has been awarded to the local Kele Contracting for the expansion of Dragon Mart. The work involves building a 177,000 square metre retail hub that will be completed in the third quarter of 2013.

Nakheel says that 80 per cent of the new space has been let. It is being developed by a company known as New Mall using a build, operate and transfer (BOT) contract, with Nakheel managing the contract until the transfer date.

The contract is the latest to be awarded at Dragon Mart. United Engineering Construction (UNEC) has been selected for the construction of the new retail mall. Two other contracts have been awarded to Kele for the construction of a 240-room Dragon Mart Hotel and a multi-storey car park for 2,000 vehicles.

Nakheel has also signed a contract to build a retail centre at its Jumeirah Park development. The local Parkway International Contracting won the AED27.5m deal that involves building a10,600 sq m community centre that will serve 4,200 homes in Jumeirah Islands, Jumeirah Village Triangle and Jumeirah Park. Construction is expected to be completed in mid-2013.

Nakheel is also preparing to start construction work on a retail centre serving the Palm Jumeirah. In April 2012, it appointed Singapore’s RSP for the design of The 160,000 sqm Palm Mall retail complex that is scheduled to open in 2014.