By Shane McGinley
Contract is the first deal for Arabtec's new joint venture with India’s Raheja Developers
Dubai’s Arabtec Construction has signed a AED750m ($204m) contract in India to build three mixed use projects, the UAE’s largest construction firm said in a statement on Thursday on the Dubai Financial Market.
The deal is the first contract for Arabtec’s joint venture in India with Raheja Developers Ltd, which is currently under formation. The Dubai-based builder holds a 63 percent stake in the venture.
Arabtec confirmed it has received a letter of intent from Raheja Developers Ltd to build three projects over the next 48 months and which have a total value of around AED750m ($204m).
The Raheja Revanta Project, located in Gurgaon, Haryana will include a high-rise apartment tower and around 1,000 low-rise buildings.
The Raheja Phoenix Project, located at Shadipur depot in New Delhi, comprises a 50 storey residential tower, a shopping mall and 2,800 affordable housing units.
Finally, the Raheja Shristi Project, also located at Gurgaon in Haryana, will see the construction of 300 residential high-end apartment units.
Arabtec currently has a backlog of projects worth around AED15bn ($4.08bn) in all of its markets by the end of the year, but it is increasingly looking to expand overseas to diversify away from Dubai's once-booming property sector.
The construction firm was among dozens of contractors that bore the brunt of Dubai’s property collapse in late-2008.
More than half of developments in the city were scrapped or put on hold in the wake of the financial crisis, leaving construction firms scrabbling for cash as project finance dried up.
Arabtec last month said it has yet to receive 60 percent of the money it is owed for projects completed before the onset of the global financial crisis.
“There are two sets of payments, payments due from work we have completed now and payments due from work we completed before,” Ziad Makhzoumi, CFO of Arabtec Holding, said. “Close to 40 percent [of pre-recession bills] has been paid, and continues to be paid. So we hope that within a year or so, most of the outstanding payments will be up to date.”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.