Local developer Nakheel plans to tender the estimated AED1.4bn ($381m) contract by the end of October to build its Palm Gateway scheme in Dubai.

“We will tender it by the end of this month, with selected prequalified contractors,” Nakheel chairman Ali Rashid Lootah told MEED on 10 October.

The decision to tender the contract to prequalified firms is a change to the developer’s procurement model. For projects in recent years, it has used open tenders that are available to any contractor prepared to pay the fee to collect the documents.

“We want to make sure we get the right interest,” said Lootah when explaining the decision to change the company’s procurement strategy. “This is a big project in a key location. We have to explain and go over it with contractors. We have had good interest.”

In late September, Nakheel invited contractors to express interest in the project. MEED reported in mid-September that the firm is planning to rentender the scheme.

Nakheel had selected a joint venture of South Korea’s Ssangyong Engineering Corporation and China State Construction Engineering Corporation for the construction contract earlier this year.

The project involves the construction of three towers and a beach complex, and is expected to take about three years to complete. It will be built on top of an existing car park that serves the Palm monorail on Al-Sufouh road at the entrance to the Palm Jumeirah.

The first tower, known as the Tubular Tower, will be 285 metres tall, with 59 storeys, including 44 above podium level. The Central Tower will be 205 metres tall, with 48 storeys. The Beach Tower will be 206 metres tall, with 48 floors. The development also includes a beach club, as well as retail, dining, and health and fitness outlets.

Nakheel is planning another tower development for the Palm Jumeirah. In September it launched a new twin tower development known as Palm 360.

The 220-metre tall towers will include two boutique hotels with a total of 110 rooms. There will also be 252 high-end one- and two-bedroom serviced apartments, and 12 four-bedroom penthouses. The project is anticipated for delivery in mid-2020.

The towers also include a 135-metre-long rooftop infinity sky pool and restaurant complex connecting the two buildings at the 30th floor, which is more than 170 metres above ground.

The Palm Gateway and the Palm 360 projects are being developed as part of Nakheel’s strategy of building assets for its leasing portfolio that generate recuring revenues.