Nakheel awards Dh1.5bn contract for The Palm Gateway development
Nakheel said on Saturday it selected Indian engineering firm Shapoorji Pallonji Group to execute a Dh1.5 billion construction contract for a residential retail complex on Palm Jumeirah.
The deal is part of Dh12bn worth of contracts expected from the developer this year.
Shapoorji Pallonji Mideast, a part of the Mumbai-based Shapoorji Pallonji Group, is set to start this quarter construction on the three-tower The Palm Gateway development, which will take two and a half years to complete.
"The Palm Gateway contract is among Dh12 billion worth of construction contracts to be awarded by Nakheel this year," Ali Rashid Lootah, the Nakheel chairman, said in a statement.
The Palm Gateway includes 1,265 luxury apartments and duplexes across three towers with the tallest being 285 metres. It will be constructed on top of the existing Palm Monorail terminal, which includes 14 levels of parking spaces. The Palm Monorail would remain operational during the construction of the project. The one to three-bedroom apartments at the complex will be available on lease. The complex will feature 8,600 square feet of retail space.
With The Palm Gateway, Nakheel’s residential leasing portfolio will double to about 35,000 units. The other new projects are coming up in Palm Jumeirah, Warsan Village, Jebel Ali Village, Dragon City, Ibn Battuta Mall and Nad Al Sheba.
Dubai’s current supply of 477,000 residential units in the first quarter is expected to increase this year, with at least half of the 28,000 units under construction slated for delivery by the end of the year, according to broker JLL. Apartment rents fell 1.1 per cent quarter-on-quarter during the first three months of the year, JLL said.
( courtesy of TheNational )