By Staff writer
New venture planned to restart work on Marina West, Amwaj Gateway, Juffair Views and Sunset Hills
A new venture designed to collect $1.1 billion (BD400 million) to revive four stalled developments in Bahrain has been proposed by industry experts.
The company, which will be established in the form of a Special Purpose Vehicle (SPV), would help restart work on Marina West, Amwaj Gateway, Juffair Views and Sunset Hills projects, it was reported.
Authorities said the proposal is a bid to tackle Bahrain’s economic downturn.
“We need to understand that Bahraini authorities similar to their GCC counterparts have employed a series of austerity measures to tackle the economic challenges,” Bahrain Chamber of Commerce and Industry’s Real Estate Committee chairman Dr Hassan Kamal told Gulf Daily News.
“They do not have the funds to take over the delayed projects and it’s difficult to convince investors at this stage to buy these properties. We cannot demolish these uncompleted deserted structures and the bottom line is someone needs to invest between BD300 million and BD400 million to complete all the [stalled] projects,” he said.
Kamal said funds for the projects could be collected by the company once its shares are issued to the public.
Experts have also proposed auctioning off two of the projects.
According to Kamal, thousands of Bahrainis and expats have invested in the overdue off-plan developments.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
1.1 million or billion??
Find or Fund??
Let the developers who took their profit upfront give back the money !
Freudian slip. Reality v.s. hope?
I agree with the earlier statement. The companies that took investors money and did not put the money into the projects need to be pursued for the money back.
I for one will not be investing in this 'fund' because I have lost trust in the investment infrastructure in Bahrain. It is shameful that we do not have similar laws to KSA wherein developers can only take funds out of the funds only when they prove they have done the work.
We need an overhaul of the laws and until then from my point of view I will not be and I don't believe many sensible people will put their money where the same process can happen all over again.