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FINANCIAL NEWS
Sorouh Real Estate gets $1.5b gov’t deal
19 Apr 2010
(MENAFN) Sorouh Real Estate said that it has won a $1.47 billion contract with the Abu Dhabi government to develop a community aimed at Emirati families, Reuters reported.
Sorouh’s Procurement Director, Khaled Al-Rajhi, said that this deal provides a new public-funding mechanism to Sorouh Real Estate and adds to its portfolio of projects in Abu Dhabi, which is suffering from the effects of the financial crisis. He pointed out that the deal is funded by Abu Dhabi’s Urban Planning Council.
Al-Rajhi noted that UAE developers have suffered amid the global financial crunch, a six-year construction boom. Dubai has suffered the most; however, Abu Dhabi, home to most of the country’s oil, has fared better.
The first phase of construction on the project, called Watani, has already started.
The major project win for Sorouh comes as the firm prepares to deliver some 1,350 apartment units in the second half this year, in a bid to strengthen the company’s revenue, Sorouh’s chief financial officer said. He noted that Sorouh will deliver another 400 apartments from its Tala Tower project starting in July.
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