Published July 16, 2009

Design Studio bags $27m contract in Abu Dhabi

The deal boost the company's order book to $193.5m

By VEN SREENIVASAN

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INTERIOR fitting-out specialist Design Studio Furniture Manufacturer has clinched a $27.03 million contract for one of the largest urban development projects in Abu Dhabi.

Mr Lim: Says Design Studio's strong order book will enable it to achieve good results despite the recession

The latest contract to supply and install doors, kitchen, wardrobes and vanity cabinets for 868 apartments and townhouses in the luxurious Rihan Heights residential project in Arzana boosts the mainboard-listed company's order book to $193.5 million.

Design Studio is expected to commence work on the latest project during the last quarter of this year.

The new township is developed by Capitala, a joint venture between CapitaLand and Mubadala of Abu Dhabi. The US$6 billion development, comprising commercial and retail buildings, schools and other lifestyle amenities, is one of the largest urban developments in Abu Dhabi.

And this project adds to the list of prestigious projects in Abu Dhabi that Design Studio has clinched over the past year. Others include prominent hotels Marina and Crowne Plaza on Yas Island, which are on schedule for completion before the inaugural Formula One race in November 2009.

Elsewhere, Design Studio has also secured another residential project in Bangkok, 59 Heritage. Design Studio, which will supply kitchen cabinets to 169 units in this development, expects to complete this project by end-2009 or early 2010.

On the local front, the company has continued clinching numerous condominium fit-out projects including three residential developments, namely Quayside at Sentosa, Livia at Pasir Ris and Belle Vue at Oxley Road. Its order book for new local residential projects secured is $14.81 million.

Bernard Lim, executive chairman and CEO of Design Studio, said the strong order book would enable the company to achieve good results despite the current economic recession and weak business sentiment.

'Our competence to secure this contract in the largest urban development project in Abu Dhabi on top of the two hotels is an affirmation of the group's presence as a premier furniture manufacturer and a reputed brand name in the Middle East,' he added.

The company recently revealed record first-quarter earnings of $4.3 million - more than two times the year-ago period's $1.69 million. Its turnover for the January-March quarter rose 69 per cent to $22.67 million, from $13.41 million a year earlier.