Emaar Misr for Development, the Egyptian arm of Dubai-based real estate giant Emaar Properties, has signed a $112.2 million contract (AED412.2m) with the UAE’s Arabtec Construction to build two urban projects within its Uptown Cairo project in Mokattam.
Construction in the two projects, which feature 449 residential units, will start immediately, the real estate developer said in a statement to the Egyptian Exchange (EGX) on Sunday.
Emaar Misr’s latest contract award to Arabtec follows a $43m (AED157m) deal for Phases 3 and 4 of Village E Levana within Uptown Cairo, which was signed in May 2018.
In July, Emaar Misr signed a preliminary agreement with El Nasr Housing and Development to end a dispute regarding land at Uptown Cairo.
According to reports, El Nasr Housing and Development agreed to drop its lawsuit that demanded Emaar Misr to pay a compensation of $60.3m (EGP1 billion) and return 3 million square metres of land in Mokattam as it claimed that Emaar Misr failed to develop the land.
Meanwhile, Emaar Misr is currently caught in a further land ownership dispute for a plot on which it is building the Marassi residential and leisure development on the country’s North Coast.
Egyptian businessman Wahid Raafat filed a lawsuit against Emaar Misr claiming more than 400 acres of the site which will be heard in court next month, according to his lawyer.
But Emaar Misr said in a statement shared by Emaar Properties on Dubai Financial Market (DFM) that the part-ownership claim was “frivolous” and that there were “no legal grounds to support it”.
Arabtec Holding recorded a net profit of $15.7m (AED58m) on revenue of $1.1bn (AED4.2bn) for the first half of 2019.
The company said total revenue declined by 12.4 percent and net profit fell by 48.8 percent compared to the same period last year.
It said this reduction was mainly attributed to a decrease in awards in the construction sector in H1 in addition to a number of legacy projects completing through 2019.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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