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HLG lands Dh401m contract to build Al Garhoud Towers

2017-01-25 12:06:53

Dubai-based HLG Contracting has landed a Dh401 million contract to build a trio of linked towers near Dubai airport.

The contract was awarded by Hasabi Real Estate for the Al Garhoud Towers project.

One of the three towers will contain a 250-bed, four-star hotel; a second will house a three-star, 350-bed hotel; and the third will have 100 serviced apartments.

The towers will share a common podium that will contain facilities including a reception and lounge area, food and beverage outlets and other amenities. There will also be three basement levels containing parking and back-of-house facilities.

Construction work on the project begins this month and is scheduled to take just under 18 months to complete, finishing in the second quarter of next year.

HLG Contracting was formed when Australian firm Leighton Contractors, now Cimic, in 2007 bought a 45 per cent stake in Al Habtoor Engineering for Dh2.6bn (US$707m). The subsequent financial crisis took its toll on the investment and the Australian firm subsequently extended a number of loans and lines of credit to the business, as well as writing down the carrying value of its investment. Accounts filed by Cimic in February last year showed that it was then owed 1.2bn Australian dollars (Dh3.1bn) by HLG, including A$726.3m of loans that were due to mature in September this year.

In November last year, Khalaf Al Habtoor issued a statement saying that he had divested his shares in the business. He said that he "took a strategic decision to depart" to concentrate on his other businesses in hospitality, real estate, automotive, education and publishing.

"I am delighted to have founded such an exceptional construction company in 1970 which to date has built many landmarks in the UAE," Mr Al Habtoor said.

His stake was transferred to HLG’s long-standing chairman, Riad Al Sadik. Cimic’s stake remains at 45 per cent.

HLG Contracting employs 21,000 staff across the Middle East.

 

( courtesy of TheNational )