Damac awards Dh1 billion contract for Damac Towers by Paramount
Dubai’s Damac Properties has awarded a Dh1 billion contract to TAV Tepe Akfen Investment construction & operations – Dubai Branch, the master developer said in a media statement on Saturday.
This is the main construction contract on its newly launched project ‘Damac Towers by Paramount,’ a luxury hotel and serviced residences in the Burj Area of Dubai.
Enabling work has been completed on site and it is ready for the main contractor to start the construction work.
The duration of the contract with TAV is 33 months and the value of this contract is Dh1.06bn, the largest single contract Damac Properties has awarded.
A contract duration of 33 months implies that the final handover of the project will be somewhere around May/June 2016.
The four towers which make up ‘Damac Towers by Paramount’ are brought together with a multi-level plaza, and each tower stretches over 250 metres into the air.
As Emirates 24|7 reported earlier, the first phase of the project sold out within hours during an exclusive invite-only launch event in March this year. More than 1,000 investors had then attended the launch at Dubai’s IMAX cinema at Meydan Hotel for the ‘premiere’ of the project.
One of the four towers will comprise of the Paramount Hotel with the remaining three towers housing the Damac Maison-Paramount co-branded serviced Hotel Residences.
Developed by Damac Properties, the region’s leading luxury private developer, in collaboration with Paramount Hotel & Resorts, the project offers an ambience and reflection of the Hollywood glamour and California cool lifestyle, synonymous with Paramount Pictures over the past 101 years.
“This project will redefine luxury and with its distinguished architecture will mark the stunning skyline of Dubai,” Said Yusuf Akcayoglu – Middle East Director, TAV Construction.
‘Damac Towers by Paramount’, will provide views of the world tallest tower, the Burj Khalifa, as well as easy access to the world’s largest shopping mall, The Dubai Mall.
This area welcomed more than 65 million visitors in 2012, an increase of over 20 percent compared to 2011. The number is more than the amount of annual tourists to New York City (52 million).
According to the latest Middle East Hotel Benchmark Survey produced by professional services firm Ernst & Young, average room rates in Dubai have jumped from $292 to $314 in April 2013, compared to the same period last year.
According to the latest report from Knight Frank, an independent global residential and commercial property consultancy, rents in Dubai had increased by 18.3 per cent in the year to March 2013.
The Knight Frank Prime Global Rental Index stated that rents in prime areas in developing cities are driving the market, with traditional powerhouses such as Hong Kong, London and New York falling well behind.
HSBC bank in its latest report indicated that non-oil business activity in the UAE increased in July, underpinned by new orders from abroad, a sign that the UAE economy remains in good health even as other emerging markets wobble.
Dubai’s property valuations is experiencing strong growth with Asteco stating that valuations across the Emirate have grown 12 per cent in the second quarter of 2013 alone and by 38 per cent compared to Q2 2012.
Damac Properties has completed 8,887 units to date and has a further 21,175 units at various stages of progress across the Middle East.
In October 2011, Damac Properties launched its hospitality division, Damac Maison, which will provide bespoke services to residents in their serviced hotel apartments, across their portfolio. This will position the company as one of the largest Hotel Apartment operators and developers in the world.