28th of June 2012
Nakheel today announced the start of construction of Dragon Mart Phase 2 – a new, 177,000 sqm retail hub with an estimated total development value of AED1 billion.
The company confirmed that, following successful negotiation with business partners, contracts worth c. AED600 million are being awarded for the construction of the extension, which is set to more than double the size of the existing Dragon Mart complex.
As a part of the extension plan, United Engineering Construction LLC (UNEC) was selected for the construction of the new retail mall. In addition, two contracts are being awarded to Kele Contracting: one for the construction of the 240-room Dragon Mart Hotel and another for the construction of a multi-storey car park for 2,000 vehicles.
Construction is expected to start shortly on obtaining the necessary regulatory approvals. The completion of the Phase 2 extension, in Q3 2013, will bring the total size of Dragon Mart to 335,000 sqm – equivalent to 47 international football pitches.
Dragon Mart 2, where 80 per cent of the available leasing space is already pre-let, will be constructed by selected business partners – New Mall Limited – through a Build, Operate and Transfer (BOT) mechanism. The project will be managed by Nakheel until the transfer date.
Speaking at Dragon Mart today, Ali Rashid Lootah, Chairman of Nakheel, said: “Dragon Mart has gone from strength to strength since it opened in 2004. Now, we are doubling the size of this amazing success story – proof of our commitment to continued delivery of new and existing projects, and of the huge demand from business wanting to be a part of the Dragon Mart phenomenon.
“Dragon Mart is already the world’s biggest trading hub for Chinese products outside mainland China. The Phase 2 expansion will provide many more opportunities for retailers, hoteliers and restaurants to prosper at this unique development.”
Dragon Mart 2, whose anchor tenants include Geant (10,000 sqm) and a nine-screen Grand Cinema complex (4,000 sqm), will include a two-storey retail mall with food court and separate terrace offering a range of outdoor dining options; a multi-storey car park; a 240-room, 8,500 sqm hotel; a civic plaza and its own district cooling plant.
The existing 158,000 sqm, 1.2 km long Dragon Mart – home to nearly 4,000 retailers – was built in 2002 and opened two years later. Footfall at the complex has increased year-on-year since it began trading in 2004. Dragon Mart currently welcomes an average 52,000 people each day, a footfall of around 19 million per annum.
Dragon Mart Phase 2 is one of a number of projects in Nakheel’s retail expansion pipeline. In April 2012, the company announced an AED25 million contract with RSP for the design of The Palm Mall on Palm Jumeirah, a 160,000 sqm retail complex set to open in 2014. Work is also due to begin on The Pointe at Palm Jumeirah – a 136,000 sqm restaurant, retail and entertainment hub opposite Atlantis The Palm – towards the end of 2012.