Aristocrat awards Dh600 million contract.
Osmal Valli, group chief executive of Aristocrat Star Investments, said that the project should be completed within 30 months and that 70 per cent has been sold.
Valli said that prices will not be revised due to market conditions, as they were "already at a reasonable" price. However, the payment plan has been adjusted and spread out over 90 months.
"This move involved utilising additional funds from our international operations. This payment plan was extended to our existing customers to assist them in difficult financial times and not as a tool towards getting new sales. As a result, the customer feedback we have received has been positive and overwhelming," he said.
Ebrahim P. Ghosal, managing director of PLGC said that it is "a good environment for starting work on the project," as the market prices for materials are stable at the moment.
Last year, prices of steel and cement saw huge fluctuations, leading to friction between contractors and developers as the price increase had to be absorbed by the contractors. Some were negotiated, while others included a 'fluctuation clause' that stated the developer had to absorb the materials price increases.
Ghosal said that while there was no fluctuation clause in the company's contract with the developer for this project, however, "should the contract prolong, for any reason, there will be mutual agreement on adjusting prices.
"In the long term there could be some price movement, but it is stable now."
The groundwork has already started, and the contractor will begin work on town houses, followed by offices and apartments.
The Royal Estates comprises 3.6 million square feet of commercial, residential, retail and a 5-star hotel.
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