The Bawabat Al Sharq master plan.
Baniyas Investment and Development Company (BID) is accepting bids for construction of phase two of its Bawabat Al Sharq development in Abu Dhabi, Construction Week can reveal.
Construction will begin immediately after the contract has been awarded next month. Speaking at Cityscape Abu Dhabi, the firm’s CEO Wael Tawil said that the contract could be awarded on a cost-plus basis.
It is valued around US $163 million (AED600 million). Works include 142 villas and 780 apartments in 13 low-rise buildings, which will be delivered in 2011.
Target Engineering Construction Company, a member of Arabtec Holding, was main contractor on phase one of Bawabat Al Sharq, and is involved in the bidding for phase two.
Cansult Maunsell/Aecom is the landscaping design contractor while the overall architect is World Planner Consultant Engineers, Tawil said.
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He added that the value of the contract had fallen considerably. “Our prices went down by around 30% to accommodate for the drop in cost of building materials.”
In total, Bawabat Al Sharq is valued at US $817 million (AED3 billion). The development will include an international school, a hospital and a shopping mall.
“About 90% of the mall has been rented,” Tawil said. The mall is part of phase one.
Around 90% of villas in the first phase of the project have been sold, along with 30% from the second phase.
“Sales today drives everything,” Tawil said. “You don’t do anything unless you have sales, which today are very normal.
“It’s an end-user market. All investors are what we call organised investors. They have the ability to finance the purchase, or at least 60-70% of the purchase.”
Construction of the first phase is set for completion in August 2010. It is currently 30% complete.
Meanwhile, BID will soon unveil a 22 storey residential tower in Abu Dhabi. No further details have been released as yet.
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Interesting article