Besix and Takreer win contracts in Abu Dhabi
A combined AED10.835 billion continues shift of business to capital
Besix Group and Takreer both snapped up recent contracts in Abu Dhabi as the momentum continues to shift towards the biggest emirate.
Besix, a Belgian contractor, which lists Emaar among its clients, won an AED5 billion contract for the Cleveland Clinic, a US $1.9 billion project developed by Mubadala Development Company, as well as an AED1.5 billion deal for Adnoc Tower, according to leader Johan Beerlandt.
Speaking to Bloomberg, he said: “The Middle East is still a very important segment for us because it’s about 40% to 45% of our business. As Dubai has dried out, we are concentrating more on Abu Dhabi and Qatar like everybody else.”
The two contracts are part of an AED10 billion haul in contracts that the group has won in Abu Dhabi recently.
It was also reported that the company is owed around AED100 million from stricken developer Nakheel. Beerlandt says he hopes “40% of the payment will be received by June”.
Separately, a subsidiary of Arabtec Holding PJSC, Target Engineering Construction Company LLC (Takreer) was also awarded two projects in Abu Dhabi with a total value of AED835 million. The projects include engineering, construction and commissioning works.
The first was an AED358 million deal for sea water intake 3 project and its associated pumping facilities, which aim for completion in 28 months. The second project was awarded by Petrofac – GS, a joint venture, to execute the sea water intake system and pipeline for the GASCO Ruwais 4th NGL Train Project – a 20-month project that has a total value of AED477 million.
Ayman Taji, CEO, said: “The two new projects enforce our strategy to position Target as a leading company in the construction sector and especially in marine engineering and construction projects. We are looking forward for a future collaboration on other projects with TAKREER and Petrofac – GS.”
Arabtec, like Besix Group, is also expecting a 40% payment from Nakheel by June. In the last week Arabtec has entertained rumours of a take-over by rival Aabar Investments, which has just entered an US $800 million loan agreement with international creditors.
Yesterday Riad Kamal, CEO of Arabtec, said the door would still be open for a stake sale with the investment firm. The two firms are believed to want to forge a “strategic partnership”. Arabtec stock has declined for much of May, from AED2.52 on the 5th to 2.25 yesterday.
Minutes from an Aabar Investments board of directors meeting on 6th May revealed that the company is to change its convertible bonds – debt instruments that allow the holder the option of converting the bond into an equity stake – in Petroleum Investments Company to a value of AED1,500 million, at a conversion rate of AED2.5.
The meeting also announced the resignation of David Forbes from the board.