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Aldar presses ahead on Dh5b projects

Following its appointment by the Government of Abu Dhabi to deliver Dh5 billion worth of landmark projects in the emirate, Aldar Properties has announced further details on the commercial and socio-economic impact that these projects are expected to deliver.
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 Dh3 billion, have already been awarded by Aldar to design consultants, supervision and contractors. Works on the three projects are commencing immediately.
The Dh5 billion of project awards fall under Aldar's third-party development management business, which has an existing portfolio of Dh10 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 Dh150 million per year over the next 3-4 years, marking a 50 per cent increase from Dh100 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.
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."
The Dh2 billion worth of infrastructure works that Aldar will be delivering on Saadiyat Island 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.
- business@khaleejtimes.com