UAE-based Arabtec Construction has won a contract of AED 366 million, equivalent to $99.6 million or 1.6 billion Egyptian pounds, from Emaar Misr to build a housing project in Egypt.
Emaar Misr, the Egyptian arm of Dubai’s largest listed property developer, awarded the contract to Arabtec Construction to build 42 town houses, 18 residential buildings and seven bungalows, along with supporting infrastructure and landscaping at Greek Village on the north coast of Egypt.
“We are excited to be working on the Greek Village and building on our relationship with Emaar Misr, which is consistent with our strategy to selectively build a solid pipeline regionally with long-standing and quality clients,” said Peter Pollard, Arabtec Holding’s group chief executive, in a statement to Dubai Financial Market on Tuesday.
The contract work is expected to commence immediately for a duration of 36 months, the statement said.
In August, Arabtec also won a AED 408 million contract from Emaar Misr to construct two projects in Cairo.
Arabtec is the biggest publicly listed contractor in the UAE, with total assets of more than AED 10.8 billion and net equity of about AED 1.19 billion.
During the third quarter of the year, Arabtec swung to a loss of more than AED 400 million, due to a reduction in revenue.
The company declared a loss of AED 437.4 million in the three months ending September 30, compared with a AED 67 million profit in the same period last year.
Arabtec is in exploratory merger talks with Abu Dhabi construction group Trojan Holding, which is part of the Royal Group conglomerate. The company has hired UBS as a financial adviser to work on a preliminary evaluation of a potential deal.
Source: The National