Reem island tower put on hold

07 January 2008
Mayadeen Gulf Estate Company has shelved plans for its estimated AED2b ($545m) First Abu Dhabi tower project on Reem island.

It is understood that the prices submitted by contractors to build the mixed-use scheme far exceeded the client’s budget, threatening the financial viability of the project.

It is unclear whether the project will now be redesigned or cancelled.

The bidders for the main construction contract on the project included two local firms, Al-Habtoor Engineering Enterprises and Al-Shafar General Contracting, along with South Korea's Samsung Corporation in a joint venture with the local Arabtec Construction.

Located within Sorouh Real Estate’s Shams Abu Dhabi development, the project involved the construction of five 50-53-storey residential towers, one seven-storey tower and two podiums with 11-13 levels. The total built-up area for the entire project is 383,000 square metres.

The project manager is US-based Turner Construction International. The consultant is RW Armstrong, also of the US. Mayadeen is a subsidiary of Kuwait's National Ranges Company (MEED 28:9:07).

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