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A BREAKTHROUGH in one of Bahrain’s longest-running stalled property sagas means that it could finally be completed in the next three years.
The partially-constructed Marina West, on the country’s western shoreline, has been a blot on the horizon ever since work ground to a standstill nine years ago.
Hundreds of off-plan investors handed over tens of thousands of dinars, but so far have nothing to show for their money despite years of campaigning.
However, the GDN can exclusively report that the company responsible for the development expects to finally complete the project by 2022.
It has written to buyers outlining various options, including full reimbursement upon project completion in 2022 if they wish to pull out of the purchase.
Those who don’t want to wait can apply for a 50 per cent refund, which they could receive as early as October.
Meanwhile, those who prefer to go ahead with their purchase will be able to do so – although the asking price will be revised up to around BD1,200 per square metre, from an original starting price that ranged between BD600 to BD900.
However, those who have already paid more than 75pc of the original asking price will qualify for a 20pc discount, which brings the price to BD960 per square metre.
Those who have already paid 50pc to 74pc will get a 10pc discount, putting the price at BD1,080.
Others who have paid less than 50pc of the original price will not qualify for a discount, but they will be given priority over new buyers.
A questionnaire asking investors whose money is tied up in the project to select their preferred option was supposed to be completed and returned to the developer by the end of last month.
However, the Marina West Real Estate Company has extended the deadline until this coming Thursday to allow more time for deliberation.
It is understood that people of 32 different nationalities bought properties at the development, with investment ranging from BD100,000 to BD200,000.
“Many investors asked for extra time to submit the survey, since they had further enquiries,” the company told the GDN in an e-mailed statement yesterday.
“We have extended the deadline of the survey until May 16.”
The survey sent out to Marina West investors reveals plans to form a new company to finish the project, with completion expected in September or October of 2022.
It added an escrow account would be opened in co-ordination with a government-appointed panel, which was set up to ensure completion of all stalled real estate developments.
“There will be an official agreement and commitment with the Committee for Stalled Real Estate Projects to open an escrow account with a bank to transfer all the amounts generated from the sales of the units to the said escrow account,” states the investor survey, a copy of which was obtained by the GDN.
At its launch in 2007 Marina West was described as a $750m seafront project, which was supposed to be completed in 2010.
Debts
In 2016 the Committee for Stalled Real Estate Projects valued it at BD86.5 million ($230m), while its debts were estimated at BD32.5m.
The developer blamed the global financial crisis for bringing the project to a standstill.
It was supposed to comprise 11 residential towers consisting of more than 1,000 units, as well as a five-star hotel.
One expat who previously invested in the project confirmed that he had received the investor survey.
He told the GDN he planned to accept a 50pc refund, if that meant he could get half of his investment back this year.
“Many investors would want their money back, even if it’s a partial amount, rather than waiting for the project completion,” he said.
sandy@gdn.com.bh
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