Belmont-based property developer Diploma Group has entered a $200 million deal to construct the second stage of a multi-use development in Abu Dhabi.
The announcement is below:
Diploma Group LLC, a wholly owned subsidiary of Diploma Group Limited (ASX:DGX)signed a Memorandum of Understanding (MOU) with Baniyas Investment & Development Company (BID) for the construction of Phase 2 of the Bawabat Al Sharq project in Abu Dhabi.
The AED $550 million (approximate AUD $200 million) Bawabat Al Sharq project is a multi-use development in Abu Dhabi, Bani Yas. Diploma will construct 170 to 200 residential villas and 13 apartment buildings varying from 6 to 7 storeys high. The project will be undertaken as a cost plus contract.
Diploma Construction's Managing Director, John Norup said "this is an exciting project for all involved. We're looking forward to constructing the project in Abu Dhabi, which will commence in September 2009."
"The company is pleased to have secured the MOU with Baniyas on such terms. It is a great result given Diploma's involvement over the past 4 months in the design and cost planning of the project," Mr Norup said.
Phase 3, a proposed further stage of the Project, may commence during the construction of Phase 2 which is expected to run for 2 years.
A construction contract will now be prepared and executed by the parties prior to 30 June 2009.
