Arabtec's Target wins Emaar's second Forte deal worth $259m
After winning a deal for Forte's Phase 1 this September, Target has been awarded another contract by Emaar to build the project's podium and twin towers
Target, a subsidiary of the listed UAE construction conglomerate, Arabtec Holding, has been awarded a contract by Dubai's Emaar Properties.
The $258.6m (AED950m) contract will see Target providing construction services for Phase 2 of Forte, a residential development in Downtown Dubai.
Arabtec revealed that the contract's scope includes the construction of the project's podium and its twin towers, which are 67 and 46 floors high.
Target's latest win follows a contract it was awarded this September to develop Phase 1 of Forte.
Phase 1 contract works include the construction of five basements for two residential towers.
Arabtec revealed that the duration of Target's work on both project phases would be 40 months.
Commenting on the contract award, Hamish Tyrwhitt, group chief executive officer of Arabtec Holding, said: "The award of Forte Phase 1 and 2 to Target Engineering demonstrates the strength and confidence of the group's relationship with Emaar Properties.
"We look forward to further building the solid relationships we have with our clients in delivering quality projects."
Earlier this month, Arabtec announced a 3.2% hike in its nine-month (9M) revenues this year.
Revenues reached $1.7bn (AED6.3bn) for the first nine months of this year, and the firm's net profit for the period amounted to $20.4m (AED75m).
Meanwhile, Q3 2017 net profits was valued at approximately $4.9m (AED18m), an improvement over the $61.4m (AED225.5m) net loss reported in Q3 2016.
The contracting specialist's backlog was valued at $4.6bn (AED16.8bn) in Q3 2017, and the firm also divested its 14.6% stake in Jordan Wood Industries during the quarter.
Arabtec's major new wins in the period included a $171m (AED628m) contract for 1,296 villas at Damac's Akoya Oxygen development, as well as contracts respectively worth $98.8m (AED363m) and $53.4m (AED196m) for Emaar's Dubai South Mall and Forte (Phase 1).
The company's portfolio of regional projects includes Louvre Abu Dhabi, the museum that opened in Abu Dhabi this month.
Commenting on Arabtec's financial results at the time, Tyrwhitt said that, going forward, "a more selective approach to tendering" would be deployed to support Arabtec's pipeline and future ambitions.
"Overall, I am pleased with the progress made so far this year to stabilise the business [and] I look forward to making further progress in Q4 on divestments and closer integration of our operating companies alongside strengthening our risk management processes," he added.
"These final deliverables will put us on track to prepare the business for growth in 2018."