Binghatti Ghost will comprise 700 residential units
Another person was killed and three injured in the shooting as they drove through a southern Yemen province, they said.
Further details were not immediately available.
The government of Yemen, the poorest country in the Arab world, is facing a secessionist movement in the south.
It has also been battling a Shi’ite insurgency in the north and a resurgent al Qaeda.
The northern rebels and the government agreed last week to a truce to end a war that has raged on and off since 2004. Previous truces have not held.
In a separate incident on Friday, clashes erupted between security forces and unidentified gunmen in Aden. No injuries were reported.
People in the south, home to most of Yemen’s oil facilities, have long complained that northerners have abused a union agreement to grab their resources and discriminate against them.
Binghatti Ghost will comprise 700 residential units
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