bizzybonita
September 24th, 2008, 03:07 AM
Fakhruddin Properties set to invite tenders for Dh900m tower project
http://www.business24-7.ae/Articles/2008/9/PublishingImages/9_23_2008/eb24_ftower_23p2_small.jpg
An artist's impression of 23-storey F-Tower. (SUPPLIED)
Fakhruddin Properties is about to invite tenders for the Dh900 million 23-storey F-Tower at Downtown Jebel Ali.
CEO Yusuf Fakhruddin said the tendering process would start in the next month and the contractor would be chosen within two months. The construction contract for the yet-to-be launched property would be worth between Dh300m and Dh350m.
Work on other Fakhruddin Properties projects is making headway, he said. Contracts for the Maimoon Twin Towers at Jumeirah Village South and the $95m Coral International Hotel Apartment at Dubai Sports City have already been awarded and construction work is due to start soon. Maimoon Twin Towers is a $326m project comprising 45-floor and 30-floor buildings.
Meanwhile, construction work on the Dh800m, eight-storey Oasis High Park at Dubai Silicon Oasis is more than 80 per cent complete.
"The contract was awarded for Dh150m," added Fakhruddin. "The structure is complete and the project will be handed over in six months."
The contract for the Dh800m Lake Central project, which was awarded to the General Contracting Company, is expected to be complete by 2010. The high-rise tower at Business Bay has a unique T-shaped design to maximise the use of space.
Recent progress, following initial groundwork construction and site preparation, has been swift and includes the completion of all shoring piles, excavations, site clearing, sonic and dynamic testing for foundation pilings and installation of on-site offices. The next phase, which covers finishing several key areas of construction, is now under way.
Fakhruddin said he expected the cost of construction materials to stabilise in the coming months.
"The UAE's problem with cement was due to supply shortages but now that factor has been taken care of. And steel prices are coming down. There are still some issues which need to be tackled – for example we are facing a problem with the availability of post-tension cables because the supplies from Saudi Arabia have been halted."
He said the global demand for construction materials had dropped since the Olympic Games and consequently prices have levelled off due to reduced demand and a decline in the cost of oil.
"Because of the Olympics there was massive demand from China for most construction materials. The cost shot up as they were willing to pay any amount to complete the projects on time.
"Although prices may not decline, we are expecting them to stabilise and do not foresee the drastic spikes that we saw in the last few months. Construction cost were rising by Dh50 per sq ft every three months. Although the inflationary pressures have stopped, the cost of living in Dubai remains high. When I awarded the contract for our first building, the cost of construction was just Dh150 per sq ft. When we awarded our last contract earlier this year the cost had increased to Dh350 per sq ft. We are now expecting the overall cost of construction to stabilise at around Dh400 per sq ft."
The developer, part of the Fakhruddin Group, is looking at overseas expansion.
"We have grown as a company along with Dubai and very soon plan to venture abroad and launch developments in India and the GCC region."
http://www.business24-7.ae/Articles/2008/9/PublishingImages/9_23_2008/eb24_ftower_23p2_small.jpg
An artist's impression of 23-storey F-Tower. (SUPPLIED)
Fakhruddin Properties is about to invite tenders for the Dh900 million 23-storey F-Tower at Downtown Jebel Ali.
CEO Yusuf Fakhruddin said the tendering process would start in the next month and the contractor would be chosen within two months. The construction contract for the yet-to-be launched property would be worth between Dh300m and Dh350m.
Work on other Fakhruddin Properties projects is making headway, he said. Contracts for the Maimoon Twin Towers at Jumeirah Village South and the $95m Coral International Hotel Apartment at Dubai Sports City have already been awarded and construction work is due to start soon. Maimoon Twin Towers is a $326m project comprising 45-floor and 30-floor buildings.
Meanwhile, construction work on the Dh800m, eight-storey Oasis High Park at Dubai Silicon Oasis is more than 80 per cent complete.
"The contract was awarded for Dh150m," added Fakhruddin. "The structure is complete and the project will be handed over in six months."
The contract for the Dh800m Lake Central project, which was awarded to the General Contracting Company, is expected to be complete by 2010. The high-rise tower at Business Bay has a unique T-shaped design to maximise the use of space.
Recent progress, following initial groundwork construction and site preparation, has been swift and includes the completion of all shoring piles, excavations, site clearing, sonic and dynamic testing for foundation pilings and installation of on-site offices. The next phase, which covers finishing several key areas of construction, is now under way.
Fakhruddin said he expected the cost of construction materials to stabilise in the coming months.
"The UAE's problem with cement was due to supply shortages but now that factor has been taken care of. And steel prices are coming down. There are still some issues which need to be tackled – for example we are facing a problem with the availability of post-tension cables because the supplies from Saudi Arabia have been halted."
He said the global demand for construction materials had dropped since the Olympic Games and consequently prices have levelled off due to reduced demand and a decline in the cost of oil.
"Because of the Olympics there was massive demand from China for most construction materials. The cost shot up as they were willing to pay any amount to complete the projects on time.
"Although prices may not decline, we are expecting them to stabilise and do not foresee the drastic spikes that we saw in the last few months. Construction cost were rising by Dh50 per sq ft every three months. Although the inflationary pressures have stopped, the cost of living in Dubai remains high. When I awarded the contract for our first building, the cost of construction was just Dh150 per sq ft. When we awarded our last contract earlier this year the cost had increased to Dh350 per sq ft. We are now expecting the overall cost of construction to stabilise at around Dh400 per sq ft."
The developer, part of the Fakhruddin Group, is looking at overseas expansion.
"We have grown as a company along with Dubai and very soon plan to venture abroad and launch developments in India and the GCC region."