Group Five bags R940m Dubai airport contract

Posted On Tuesday, 07 June 2005 02:00 Published by eProp Commercial Property News
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GROUP Five’s share price leapt 5% yesterday after it said it had landed a R940m contract to build a cargo terminal at Dubai International Airport

Mike LomasGROUP Five’s share price leapt 5% yesterday after it said it had landed a R940m contract to build a cargo terminal at Dubai International Airport together with partner Al Naboodah Contracting Company. Group Five’s share was about 75%, said CEO Mike Lomas.

It would be one of the largest multi-disciplinary projects ever undertaken by Group Five and would bring the group’s total value of current contracts in Dubai to more than R1,2bn.

The contract, awarded by Dubai Civil Aviation, would add about 15% to Group Five’s civil work order book, which has been negatively affected by depressed demand for civil work in SA over the past year or two.

Group Five over the past 18 months had been transferring much of its civil work resources to Dubai, where there was more demand. The Dubai contract would also restore the balance of revenue that Group Five traditionally enjoyed between local and foreign work, to generating about 35% of revenue from work outside of SA, Lomas said.

Lomas said Group Five knew its Dubai partner in the project well. The South African Group was working on a R550m central utilities complex at the Dubai international airport together with Al Naboodah Contracting Company at the moment.

Work on the cargo terminal commenced last week, and is scheduled for completion in 15 months.

The terminal forms part of the Dubai government’s $4,1bn expansion project at the airport.

The group also said yesterday that it had been awarded a contract to build an Emirates aeroplane test centre for General Electric and Emirates Airlines to the value of R110m.

Last modified on Saturday, 19 October 2013 10:21

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