Aldar Presses Ahead With Work on Recently Awarded Dh5 Billion Projects
Following its appointment by the Government of Abu Dhabi to deliver AED 5 billion worth of landmark projects in the Emirate, Aldar Properties PJSC (‘Aldar’) announced today further details on the commercial and socio-economic impact that these projects are expected to deliver.
The three projects reaffirm Aldar’s status as the partner of choice for the Abu Dhabi Government. The long-term commercial value of these projects solidifies the franchise value of Aldar’s development management business unit and the robust profit contributions from the Al Falah expansion, twofour54 campus as well as infrastructure management fees on Saadiyat Island.
The projects will also benefit the Abu Dhabi economy by driving significant flow of capital into the construction sector and across its local supply chain. Fourteen contracts, totalling AED 3 billion, have already been awarded by Aldar to design consultants, supervision and contractors. Works on the three projects are commencing immediately.
This AED 5 billion of project awards fall under Aldar’s third-party development management business, which has an existing portfolio of AED 10 billion worth of projects with the Government of Abu Dhabi, in the emirate and overseas, that are nearing completion. With the addition these awards, Aldar is increasing its gross profit guidance for third-party development management business to AED 150 million per year over the next 3 to 4 years, marking a 50% increase from AED 100 million per year previously achieved and adding to its existing guidance for the traditional homebuilding business that generates profits from the launch of 1,500 residential units per year into the market.
Commenting on the announcement, Talal Al Dhiyebi, Chief Executive Officer of Aldar, said, “The importance of these projects lies in the commercial and socio-economic value they will create for both Abu Dhabi and Aldar. Not only will they create a supply of flagship residential and commercial developments in Abu Dhabi, they are also set to create robust revenue streams for the construction sector and the broad supply chain it entails. Our track record as the developer of choice in Abu Dhabi, and as a strategic partner to the Government, will play perfectly in the delivery of these projects and unlocking the long-term value they uphold. We look forward to putting our expertise and experience in what will further the attractiveness of both Yas Island and Saadiyat Island as world-class destinations, and Al Falah as one of the most sought-after housing communities in Abu Dhabi”.
An AED 2 billion project was awarded to Aldar to develop the expansion of Al Falah housing community on behalf of the Government, adding 899 new villas, each is 515 sq.m, to the community’s existing 4,898 villas. A mosque that can accommodate for 2,000 worshippers will also be developed as part of the expansion. Trojan was appointed to deliver the units, which are currently being designed, and are set to be completed over the course of 3 years.
twofour54’s new campus is set to bring a new dimension to the vibrant ecosystem available on Yas Island. The state-of-the-art facility, which Aldar was awarded an AED 1 billion project to develop, will be home to a workforce of 10,000 industry professionals, and will become another focal point for investment flows into the capital, and its media and entertainment industry. Arabian Construction Company (ACC) was appointed as the main contractor on the 99,500 sq. m project, which will have over 1,800 parking spaces and is scheduled to be completed in 2021.
The AED 2 billion worth of infrastructure works that Aldar will be delivering on Saadiyat Island, on behalf of the Government, is set to strengthen the island’s integration with the rest of Abu Dhabi. Works, which include landscaping and the construction of infrastructure, transport-related structure and a fountain, are set to start immediately, to be completed in phases between 2021 and 2022. Ghantoot, Gulf Contracting Company and NBHH are the appointed contractors on the first phase of infrastructure works.
Aldar Properties PJSC, is the leading real estate developer in Abu Dhabi, and through its iconic developments, it is one of the most well known in the United Arab Emirates, and wider Middle East region.
From its beginnings in 2005 through to today, Aldar continues to shape and enhance the urban fabric of the UAE’s Capital City in addition to other key areas of the Emirate of Abu Dhabi.