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| 19 September, 2017

Dubai's Nakheel reveals lowest bid for Deira Islands resort

Rendering of the 800-room RIU beach front resort on the Deira Islands master development in Dubai. Image for illustrative purpose.

Rendering of the 800-room RIU beach front resort on the Deira Islands master development in Dubai. Image for illustrative purpose.

Nakheel/Handout via Thomson Reuters Zawya

State developer says tender for RIU resort came in below $98.8 million

State-owned master developer Nakheel is currently assessing ten proposals for the construction of its new, 800-room RIU beachfront resort at Deira Islands, with the lowest bid coming in at 363 million UAE dirhams ($98.8 million), it announced on Tuesday.

The all-inclusive beach resort is being built as part of a joint venture between Nakheel and Spain’s RIU Hotels and is due for completion in 2020. Nakheel chairman Ali Rashid Lootah told Zawya at last week’s Cityscape Global exhibition in Dubai that a contract for this project will be awarded by the end of the year.

The RIU resort will have a total investment value of 670 million UAE dirhams ($182 million), the developer said, and is one of two agreements Nakheel has signed for resorts at Deira Islands. The second is with Centara Hotels.

Three other plots remain available for similar resort hotels.

In a press statement yesterday, Nakheel said that it has awarded 7.5 billion UAE dirhams worth of contracts thus far at the 15.3 square kilometre Deira Islands site. Some 4.2 billion UAE dirhams worth of this was via a single contract to Dubai’s United Engineering Construction (Unec) in April.

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The 10.3 million sq ft mall will sit at the centre of a district known as Deira Central. It will be surrounded by about 50 towers – 24 of which are being developed by Nakheel and retained for its own leasing portfolio. This will comprise 16 apartment buildings, two hotels and four serviced apartment buildings.

Speaking to Zawya last week, Lootah said Nakheel was on track to meet a previously-announced target of growing its recurring revenues to 7 billion dirhams per year.

“I think we will meet our target by 2021,” he said.

© Zawya 2017