Dubai-based Arabtec has signed a AED453m (US$123.3m) deal to provide enabling works on what will become Europe’s tallest office building.
In a filing made to Dubai Financial Market on Monday, the UAE’s largest builder said it would provide the works for the 463m high, 85-storey Gazprom Tower in the Russian port city of St Petersburg in partnership with the energy giant Gazprom’s Okhta Centre unit.
Gazprom plans to move its headquarters from Moscow to the St Petersburg development once it is completed.
Since first being proposed in 2006, the US$3bn Gazprom Tower has drawn controversy, with UNESCO at one point claiming the development could ruin St Petersburg’s historic skyline and lead to its delisting from its list of world heritage sites.
Arabtec, which currently derives the vast majority of its revenue from the GCC, said it was seeking more projects in Russia, a market which it described as “promising”.
The Dubai-based firm made a net loss of AED11.6m compared to a profit of AED29m in in its most recent second quarter compared to a year earlier, while revenue increased to AED1.3bn from AED1.2bn.
Contracting costs increased to AED1.2bn from AED1bn while administrative expenses rose 62 percent to AED154.2m from AED95m.
Arabtec, which along with Turkey’s TAV Insaat and Athens-based Consolidated Contractors Company, recently secured a AED10.8bn contract to build a terminal at Abu Dhabi Airport in June. Construction was scheduled to begin in the third quarter and is scheduled to be completed in 2017.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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