Abu Dhabi: Aldar Properties, Abu Dhabi’s largest real estate developer by market capitalisation, has awarded a contract worth nearly Dh4 billion in Kazakhstan to a joint venture company led by regional construction major Arabtec, it was announced here on Monday.
In a joint statement, the two companies said Aldar’s contract is for the development of the Abu Dhabi Plaza in Astana, Kazakhstan. Aldar EuroAsia, an Aldar subsidiary, awarded the multi-billion dirham contract to develop Abu Dhabi Plaza, a 500,000 square metre mixed-use development comprising five towers, the tallest of which will measure 320 metres.
Reacting to the news, a Dubai-based independent analyst told Gulf News by telephone: “This is great news for Arabtec but it’s far too early to assess the profitability and execution of the Kazakhstan project. For Aldar, its focus, despite the size of the Kazakhstan project, will firmly remain on a merger with Sorouh and its UAE projects.”
Aldar’s stock on the Abu Dhabi Securities Exchange closed 2.14 per cent higher at Dh2.39, while Arabtec’s shares were up 3.12 per cent, closing at Dh2.12 on the Dubai Financial Market.
“The Abu Dhabi Plaza is a response to the growth in the number of visitors to Kazakhstan’s capital city and reflects the growing relationship between the UAE and Kazakhstan. Construction is scheduled to commence shortly and the project is due for completion in 2017.” the statement added.
Ambitious growth plans
Ali Eid Al Muhairi, chairman of Aldar Properties, said: “The Abu Dhabi Plaza is a testament to the commitment of UAE companies to support Kazakhstan as it pushes forward with its ambitious economic growth plans. With Arabtec and CCC’s strong track record of excellence and timely completion of projects to high global standards, we are confident that this development will be viewed as a new landmark for Kazakhstan on an international level.”
Hassan Abdullah Ismaik, Arabtec’s managing director and chief executive, said the “new project brings the total gross value of contracts awarded in 2013 to nearly Dh13 billion, which is anticipated to have a positive impact on Arabtec’s performance over the near to mid term.”
The Kazakhstan development will contain 566 luxury residential apartments, 107,000 square metres of commercial office space, a five-star hotel with additional serviced apartments, a 50,000 square metre retail podium and four basement car parks with space for more than 4,000 vehicles.
Aldar’s diverse property portfolio includes major developments and re-developments within Abu Dhabi, including Yas Island, Al Raha Beach, World Trade Centre Abu Dhabi and Al Falah. The company owns a sizeable land bank in strategic locations throughout the emirate.
In April, Aldar said it had posted a first quarter net profit of Dh154.3 million, down from Dh478.2 million in the corresponding period a year ago, while revenue fell to Dh1.62 billion from Dh3.59 billion last year.
Arabtec reported a net profit of Dh99.7 million for the first quarter of 2013 and posted a 20 per cent increase in its first quarter revenue to Dh1.55 billion, largely driven by strong performance in its Saudi Arabia and Qatar operations.
