Hochtief subsidiary forms joint venture in the United Arab Emirates

The two partners Al Habtoor/Leighton and TDIC each hold a 50% share in the new company TDIC-Leighton Contracting LLC. The joint venture will undertake building, civil engineering and infrastructure projects and also offer project, construction and facilities management. Annual revenue is expected to be more than EUR 183 million in the first year and to increase to a minimum of EUR 950 million in the fifth year.

With the joint venture, Hochtief subsidiary Leighton makes a major move towards expanding its activities in the booming Gulf region. The close ties with TDIC and the upcoming large-scale investments in Abu Dhabi‘s tourism sector offer very good perspectives. Another key strategic advantage is the great engineering competence of TDIC-Leighton Contracting.

Both partners contribute first projects to the joint venture: Al Habtoor/Leighton brings in the contract already received from TDIC in September to build a ten-lane highway from Abu Dhabi to Saadiyat Island (valued at EUR312 million). This contract is not yet included in the targeted EUR183 million in first-year revenues of TDIC-Leighton Contracting. TDIC integrates its Eastern Mangroves Hotel and new TDIC headquarters construction projects into the joint venture. The volume of these projects was agreed to be kept confidential.

Since 2007, Leighton has held 45% of Al Habtoor. This gives the Hochtief subsidiary a 22.5 percent share in the 50:50 TDIC-Leighton Contracting joint venture. Hochtief itself holds 55% of the Leighton shares.