Chinese builder CNCEC's contract for Mag City Phase 1 worth $490m
The Chinese contractor and Dubai developer also signed a letter of intent to build the remaining phases of Mag City for $381m
Mag Property Development (Mag PD), the property development arm of Mag Group Holding, has picked China National Chemical Engineering Group Co (CNCEC) to work on Phase 1 of the developer’s Mag City megaproject in Dubai, with the contract being valued at $490.1m (AED1.8bn), it was announced after Construction Week reported on CNCEC's contract win last week.
During a contract signing ceremony held at CNCEC’s headquarters in Beijing, which was attended by chairman of CNCEC, Dai Hegen, and chairman and founder of Mag Group Holding and Mag LD, Talal Al Gaddah, a letter of intent was also signed between the two companies to construct the remaining phases of Mag City for $381m (AED1.4bn).
Located in Dubai’s Mohammed Bin Rashid Al Maktoum City's Meydan District 7, Mag City features 5,100 units comprising studios; one- and two-bedroom apartments; and 694 two-, three-, and four-bedroom townhouses.
The development includes 2,322.6m2 of retail space in addition to indoor and outdoor playing areas.
Commenting on the contract win, Hegen said: “CNCEC is working on various projects across the UAE, Saudi Arabia, Oman, and Iraq, with a total worth of $3.2bn (AED11.8bn).
“We have a staff of nearly 20,000 people who work in housing, infrastructure, petrochemical, and chemical industries,” Hegen said, adding his team would focus on delivering Mag City to locally approved high building standards.
Al Gaddah added: “The company was appointed after careful consideration due to their capacity to deliver on time and deliver the quality which we promise our clients."