Tameer Towers project under consideration

2
1584

tameertowers-nightviewTameer Holding has informed the contractors appointed to build  the Tameer Towers project in Abu Dhabi about it’s decision to cancel the contract, says MEED.

However the Sharja-based developer has not made any  public announcement about the project’s cancellation. Rumours about delays  from six months to one year are circulating among investors. Presumably the construction of the commercial tower will be put on hold for longer period of time.

The developer awarded the AED 6 bn ($1.6bn) contract in September 2008 to the joint venture of the local Al-Habtoor Engineering, South Africa’s Murray & Roberts and Saudi Arabia-based Al-Rahji Contracting.

shams-aerial-bigThe project is located on Reem island and involves building six towers between the sea and the Central Park area of the Shams Abu Dhabi development. The main buildings are a 74-floor, 300-metre-tall office tower in the commercial area, a 21-floor hotel and apartment tower, two 50-floor residential towers and two 30-floor residential towers. The total built-up area will consist of 915,000 square metres.

The US’ Hill International is the project manager and France’s Bureau Veritas is construction manager.

The project is not the first to be put on hold by Tameer, says MEED. In December 2008, the developer put its 125-storey Anara tower project in Dubai on hold. The building was to have been used as Tameer’s headquarters, and the developer had intended to use the development’s design as a blueprint to build tower developments in all major cities in the Gulf.

The tower was to be built on the site of the recently demolished Palm Hotel and the still existing Hard Rock Hotel on Sheikh Zayed road. The project involved the construction of a mixed-use tower, with serviced apartments, penthouses and a small retail area, in addition to the Tameer office space.

RELATED ARTICLESMORE FROM AUTHOR

2 COMMENTS

  1. Update 1: Tameer ‘reviewing’ Reem Island contracts
    http://www.thenational.ae/article/20090324/BUSINESS/928204416/1051

    Tameer Holding, a Dubai-based property developer, is “reviewing” its construction contracts for the US$1.6bn (Dh5.87bn) Tameer Towers on Reem Island.

    Sources close to the company said the developer was planning to cancel the construction contracts with Al Habtoor Engineering, Murray & Roberts and Al Rajhi Contracting. However, one option the company was considering was to hire the same contractors at renegotiated prices, the source said.

    “Tameer is reviewing the construction programmes and associated costs for its iconic Tameer Towers project on Al Reem Island,” a company official said. “Tameer confirms that the Tameer Towers project is moving ahead. The enabling works are complete. Residential sub-structure works will commence upon completion of this assessment.”

    Property developers have been renegotiating construction contracts as prices for materials such as steel and concrete decline. In some cases, developers have passed on those savings to buyers through lower home prices to spur sales.

    Cancelling construction contracts can lead to drawn-out disputes, as is proving to be the case with one large project in Dubai.

    Earlier this year, the Meydan City project for a racecourse and development in Dubai cancelled its construction contracts with Arabtec and a Malaysian engineering firm, WCT. Last week, the company hired China State Construction Engineering Corporation and Mammut Building System to finish the project. But Arabtec and WCT are seeking Dh1.65bn through arbitration proceedings because they say Meydan broke its contract agreement.

    Tameer, which is majority owned by the Al Rajhi Investment Group in Saudi Arabia, sacked more than half its employees, or 180 people, late last year as the property sector swung into a downturn.

    Tameer Towers is planned to be a central project of the Shams Abu Dhabi development on Reem Island. The project includes six towers, including four residential buildings, one commercial building and a hotel, as well as other facilities.

    Sorouh Real Estate is the master developer of the site. Gurjit Singh, Sorouh’s chief property development officer, declined to comment on the Tameer project specifically, but said the Shams Abu Dhabi project was making “rapid progress” with the Sun and Sky towers expected to reach their final height soon.

    “In the current global economic climate, it will not be surprising if some developers choose to delay some projects,” Mr Singh said. “But such delays will not impact Sorouh or its projects. A development such as Reem Island is a long-term project and short-term delays will not be significant issues.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here