Dubai's DSI wins $163m MEP contract for Abu Dhabi's Reem Mall
DSI will work on the 26ha project through a JV agreement with Itinera-Ghantoot
Struggling Dubai-headquartered builder Drake and Scull International (DSI) has been appointed as the mechanical, electrical, and plumbing (MEP) contractor for the 26ha Reem Mall on Abu Dhabi’s Reem Island.
According to a statement, DSI will implement the job under a $163.4m (AED600m) contract through a joint venture agreement with Itinera-Ghantoot. The latter firm is itself a joint venture between Italian construction company Itinera, one of Italy’s largest construction companies, and UAE-based Ghantoot, and is serving as main contractor for Reem Mall.
The project is being developed by Al Farwaniya Property Developments, a partnership between Agility, its affiliate United Projects for Aviation Services Company, and National Real Estate Company.
Located in the heart of Abu Dhabi’s Reem Island, Reem Mall will host around 450 stores, featuring 85 food and beverage outlets and various family-friendly entertainment attractions, including Snow Park Abu Dhabi by Majid Al Futtaim.
The win comes amid a turbulent time for the loss-hit DSI. After a challenging year, exemplified by its H1 2018 financials when the firm reported a $49.8m (AED183m) loss, DSI was forced to quash claims in September that its shareholders were meeting to discuss the company's dissolution.
DSI shares were barred from trading on 14 November, 2018 after it announced the appointment of external restructuring advisors.
In a company notification dated 20 November, DSI said it was in “continuous communication and operation with [DFM] and the Securities and Commodities Authority to lift the suspension on the trading of [its] shares once the ongoing operational and financial restructuring plan is approved”.
“[DSI] will continue to deliver on its projects as well as pursue ongoing measures to accelerate bidding and secure new projects,” the firm added.