// NEWS
RKM Durar to build AED650mn project Dubai-based RKM Durar Properties, a joint venture between RKM Real Estate and Durar Al Emarat Properties, has launched a new ‘U’ shaped twotower residential project on the banks of Dubai Water Canal. The J One project’s Tower A will have 19 floors offering 257 studios, one-, and two-bedroom apartments, while Tower B with 18 floors will provide 90 two-, three-, and four-bedroom units. The project, the group’s first development, will also have six villas and nine retail units. The tower A includes two temperature-controlled pools, spas, gyms, a sky garden, and a children’s playground. The tower B has another
two temperature-controlled pools, spas, health clubs, and VIP lounge. The entire project is spread across 83,612sqm of area. The project contractor is Ali & Sons
Contracting, which is part of Ali & Sons Holding. The project is designed by a consortium of consultants, including QHC Architects and Engineers as its architect and lead con-
sultant, Meinhardt Singapore PTE as its engineering consultant, and Wrenn Associates International as its interior design consultant. The developer said prices will range from AED825,000 for a studio to AED2.2mn for a two-bed unit. Expected to be completed in Q3 2019, construction has been finished for the basement and the first two levels. Mohammed Miqdadi, general manager, Durar Al Emarat Properties, said: “J One is one of the pearls of RKM Durar Properties and can be considered a real work of art, designed specially to provide an optimal living space of the highest quality to the residents of the towers.”
Results
Orascom posts $2bn H1 2017 revenue Orascom Construction has reported a consolidated first half 2017 revenue of $2bn in line with the previous year. Consolidated net income attributable to shareholders increased 4.7% year-on-year to $51.7mn in H1 2017 and decreased 10.2% y-o-y to $23.7mn in Q2 2017. The MENA region accounted for 54% of total revenue, of which Egypt represented 91%, while Weitz and Contrack Watts comprised 28% of the total. Net income in H1 2017 in MENA reflects the improved performance in the second quarter while net income in the US was impacted by the realisation of a deferred tax asset of $20mn, the company said. Net income contribution from Besix increased to $13.5mn in Q2 2017, bringing the total contribution in H1 2017 to $24mn compared to $9.5mn the previous year. The group’s net cash position stood at $202.1mn as of June 30, 2017, compared to $204.1mn as of December 31, 2016 and $186.8mn as of March 31, 2017. Total equity increased 26.2% to $381.6mn compared to the level at December 31, 2016. Consolidated backlog excluding Be16
six stood at $4.7bn and new awards at $747.3mn as of June 30, 2017. The group expects to sign a number of important projects during the second half of 2017 across MENA and US markets, while the current backlog provides sufficient visibility on profitability, it said. Backlog as of June 30, 2017, was impacted by approximately 20% due to the devaluation of the Egyptian pound. Infrastructure and industrial work continue to account for the majority of the consolidated backlog, representing 86% of the total. Including the group’s 50% share in Besix, pro-forma backlog and new awards stood at $6.6bn and
// construction business news me // October 2017
$1.5bn, respectively, as of June 30, 2017, the company said. Orascom Construction CEO, Osama Bishai, said: “We continued to expand our presence in Egypt’s infrastructure sector during the second quarter and signed additional projects in power and roads as well as works associated with the new administrative capital. Our significant involvement in all major segments of Egypt’s construction market further strengthens our position in key areas of focus such as transportation and water treatment. “In the US, we remain focused on executing our current projects while evaluating new opportunities. We are also pleased to report that Weitz has successfully completed, ahead of schedule, the largest student-housing complex in the US at Texas A&M University, solidifying its leadership in this growing sector of the construction market. Furthermore, we continue to execute our plan to streamline our US subsidiaries to improve our overall cost structure as we aim to grow this part of our business and increase profitability.”