Drake & Scull International, the loss-making contractor undergoing restructuring, won a Dh600 million contract to work on Reem Mall project in Abu Dhabi.
The Dubai-based company aims to accelerate bidding for and securing "carefully selected" projects in the UAE, DSI said in a statement to the Dubai Financial Market on Wednesday. The firm is in various stages of bidding for fully financed projects and is progressing in "its ongoing comprehensive restructuring efforts".
It won the Dh600m contract to execute the mechanical, electrical and plumbing works of the Reem Mall project under a joint venture agreement with Itinera-Ghantoot, the company leading the project joint venture. Reem Mall is a new 2.8m square foot lifestyle, retail and entertainment project, located on the capital’s Reem Island. When completed, it will feature 450 stores and various family entertainment attractions including Snow Park Abu Dhabi by Majid Al Futtaim.
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Al Farwaniya Property Developments, a partnership between Agility, its affiliate United Projects for Aviation Services Company, and the National Real Estate Company is the project developer. Itinera-Ghantoot JV, a joint venture between Itinera, one of Italy’s largest construction companies, and Ghantoot, the UAE builder, is the lead contractor of the project.
DSI has struggled to contain its losses amid a slowdown in the construction market. The cash-strapped company, which has faced mounting losses since 2015, posted a net loss of Dh498 million for the three months to September 30, compared to a net loss of Dh317.6m in the year-earlier period.
As part of its restructuring, DSI hired Tussbridge Advisory as financial advisers and law firms Allen & Overy and Al Tamimi & Company as legal advisers to oversee a new "comprehensive" plan to stabilise the business. The appointments are part of continued restructuring efforts launched two years ago to turn the company around.
