April 16 (Bloomberg) -- Aldar Properties PJSC, the Abu Dhabi developer merging with its biggest rival, won a government contract to build 996 villas, Chairman Ali Eid Al Mheiri said.
The homes will be completed in two years, Al Mheiri told reporters in the United Arab Emirates capital today. The company also agreed to lease out an office tower at the World Trade Center Abu Dhabi to Arabtec Holding PJSC, the U.A.E’s biggest construction company.
Aldar plans to complete its merger with Sorouh Real Estate Co. in June to create the Middle East’s third-largest developer. The companies are benefiting from government efforts to commission new developments and restart others that have been stalled since the financial crisis.
Aldar has sold 125 homes at its Al Raha Beach project in the emirate, the chairman said. The developer plans to focus on completing Yas Island, which already includes seven hotels, a water park and the Ferrari World amusement park that was bought from Aldar by the government in 2011, Al Mheiri said. Prices at Al Raha Beach may rise 2 percent to 2.5 percent by the end of the year, he said.
“There is always a lag between Dubai and Abu Dhabi, so when we see improvement in Dubai, we feel confident” he said. Prices have stabilized and are likely to increase in the next six to 12 months, Al Mheiri said.
Arabtec’s plan to lease the 59-story Offices at World Trade Center tower will help the company’s expansion into oil and gas, power and infrastructure, the developer said in a statement.
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