Nakheel, Dubai-based master developer, on Sunday awarded contract worth over Dh500 million to two contracting companies for development of 381 Legacy Villas in Jumeirah Park master community.
Arabtec Construction will be constructing 134 four-bedroom villas with their contract valued at Dh159 million. SS Lootah Contracting will be building the remaining 247 five-bed villas.
Sanjay Manchanda, CEO, Nakheel said: “The total value of the contract is over Dh500 million and we expect completion of these villas in the next 18 to 24 months.”
Nakheel has grossed sales of over Dh1.2 billion to date in the project, which the company CEO stating the project was substantially sold.
Asked the total value of contracts issued in 2012, Manchanda said Nakheel currently has over a dozen of sites activated with contractors being paid on time.
“We have awarded on a very regular basis but I think we have been regularly paying all our contracts almost more than a dozen site activated and we have paid out a substantial amount of money to our contracts in 2012 alone.”
Arabtec Construction’s CEO Greg Christofides said: “Over the last 18 months large developers and big players such as Nakheel have come to the table wanting to resolve the financial issues with their contractors and restart some of the projects that have been suspended and actually introduce new projects into the market. We do believe there is a lot of positive sentiment in the market especially over the 2012 year and we are very hopeful for the future.”
This is the third project awarded to Arabtec by Nakheel with the contracting company handing over 300 Al Furjan villas in February this year.
Spread across 350 hectares, Jumeirah Park is located next to the Jumeirah Islands community and offers three distinct styles of villas: Legacy, Regional and Heritage. The master development will house 2,000 villas of which 545 villas have been completed to date.
In October, company Chairman Ali Rashid Lootah told Emirates 24|7 they had no plans to launch the Regional and Heritage themed villas in Jumeirah Park.
“We don’t want to flood the market with too many units… we do out studies well and launch when we see there is market demand. People have trust in Nakheel and that is reflected our the success of our project.”
This year, Nakheel has successfully launched two projects: the Palm Residence, and Palm Views East and West on the Palm Jumeirah. It recently sold 122 residential villa plots in Jumeirah Village Circle, a 860-hectare master development south of Al Khail Road, for over Dh113 million.