Arabtec is set to bag a construction contract worth Dh200 million to Dh300 million from AA Properties Dubai, which plans to build luxury villas and houses on the Taiwan island of The World project, it was reported on Tuesday.
AA Properties Dubai plans to sell these luxury accommodations to high net worth foreign buyers, primarily in Europe and Asia, Bloomberg reported.
The real estate broker and developer will award a construction contract worth Dh200-Dh300m to Arabtec Holding, AA Properties partner Jeroen van der Geer said in an interview with the newswire.
The company plans to build 12 beach villas on the island, priced between $8.2m (Dh30.1m) and $9.5m, as well as three houses, he said.
"As soon as we get the building approval, we can finalise the contact with Arabtec," Van der Geer said, adding he expects developer Nakheel to give its consent within a month.
AA Properties bought the 20,000 square-metre island from Nakheel last year for Dh55m, Bloomberg added.
Van der Geer said selling the real estate will be "challenging" in a market where values have fallen for two years.
AA Properties will market the villas mainly in Asia and Europe to "people who have a lot of money and just want to have something special and unique in Dubai," he said.
The company plans to start villa construction by the end of this year and to complete the project two years later.
By Staff
© Emirates Business 24/7 2010
