By Benjamin Roberts
Flagship project of Kuwait-owned developer helped push firm to $225,039 gain
First Bahrain posted modest net profits for 2010 as income from its flagship Majaal project helped reverse the previous year’s loss.
The Bahrain-based Kuwaiti developer said it made an after-tax gain of $225,039, which compares with a loss of $6.39m the previous year.
This was mostly due to the operating revenue it has gained from the Majaal project, a three-stage warehouse development in Bahrain Investment Wharf that will be leased in segments to logistics and companies engaged in light manufacture.
The leasing revenue “contributed to an overall increase of KD478,801 ($1.269m) in the investment value of the company's investment properties, compared to a loss of KD2.1m ($5.56m) in the value of those properties during 2009,” said Salah Ahmed Al-Wuhaib, First Bahrain chairman.
He added that the company would this year focus on the expansion of the second phase of Majaal, which will more than double the size of the facility.
Construction work on the project had stalled during March in the wake of violent street protests in the capital, with First Bahrain staff members staying at home to avoid the Seef area near the company’s offices, according to Yasser Abu-Lughod, head of development at First Bahrain. The contract award for the construction of the second phase has also been delayed.
The company is also going to produce equivalent facilities in Saudi Arabia.
“We are in advance planning on this effort and we hope to be making major announcements about a partnership to facilitate this expansion soon,” the chairman said.