Aldar Properties, a leading real estate company in the UAE, announced it the AED 5 billion landmark projects it has been awarded from the Government of Abu Dhabi will bolster the franchise value of its development management business unit.
These projects will also ensure Aldar’s position as the partner of choice for the Abu Dhabi Government, according to a press release.
The ongoing social, economic, and infrastructure projects within Abu Dhabi are likely to boost the company’s profit contributions from the Al Falah expansion, twofour54 campus, and infrastructure management fees on Saadiyat Island.
The three projects will also support Abu Dhabi’s economy by driving flow of capital into the construction sector and across its local supply chain, Aldar said.
Moreover, Aldar has won fourteen contracts worth a combined AED 3 billion to design consultants, supervision and contractors.
Construction of the AED 5 billion projects has commenced immediately under Aldar’s third-party development management business, with an existing portfolio of projects worth AED 10 billion with the Government of Abu Dhabi, in the emirate and overseas.
These additional awards bring Aldar’s gross profit guidance for third-party development management business to AED 150 million per year over the next three to four years, which is 50% higher from AED 100 million per year previously achieved.
Talal Al Dhiyebi, CEO 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,” he added.
Earlier this month, Abu Dhabi Government and Aldar Properties unveiled partnership to deliver AED 5 billion social, economic, and infrastructure projects across a number of key destinations in the Emirate.
Aldar has been awarded the development of the remaining infrastructure and public realm works on Saadiyat Island at a cost of AED 2 billion, as well as the expansion of Al Falah housing community, which will see new 899 villas to the existing stock of 4,898 with a total development value of AED 2 billion.
Construction work on Saadiyat Island is set to be completed in phases between 2021 and 2022, Aldar said.
Ghantoot, Gulf Contracting Company, and NBHH have been appointed as the contractors on the first phase of infrastructure works on Saadiyat Island.
Trojan has been appointed to deliver Al Falah’s units, set for completion over the course of a three-year period, Aldar noted.
The company has been awarded an AED 1 billion contract from the development of twofour54’s new campus on Yas Island, which is expected to bring a working population of 10,000 to the island.
Arabian Construction Company (ACC) was appointed as the main contractor of twofour54’s project, expected to be completed in 2021.