A LAST-DITCH attempt is being planned by a group of property buyers, who invested in a stalled multi-million dollar residential project in Bahrain, to resolve the issue.
A petition will be launched next month urging the kingdom’s leaders to intervene in the matter.
This will be the third petition to be launched by the investors waiting for new homes in the $750 million Marina West project, located on the Janabiya Highway.
Work first started on the project in 2007, with developers promising 11 residential towers offering more than 1,280 apartments along with a
five-star hotel.
It was then described as the country’s largest gated beachfront residential development set for completion in 2009.
Nearly 400 people invested in the project that was stalled in March 2010 because of “global financial crisis” according to the developer.
More than 100 people signed a petition in 2010 urging top Bahraini officials to step in to revive the project followed by a similar petition, signed by 300 people, in 2013.
The latest initiative is being launched by a group of Saudi investors who hope to get Bahraini investors also on board.
“It’s high time we did something about the issue which has been going on for years,” said Shadia Alauddin, a Saudi who is spearheading the campaign.
“The idea is to work together with fellow homeowners from Bahrain to collect signatures on a new petition expected to be launched next month that will be presented to top officials in Bahrain.”
Ms Alauddin and her two brothers Dr Ali Alauddin and Omar Alauddin paid 2m Saudi riyals each for three duplex apartments.
She recalled how in December 2008 the developers contacted them and offered a deal to upgrade from a three-bedroom unit to a duplex with more facilities.
“They offered us really good discounts and we all decided to upgrade as we were promised the units will be handed to us in March 2009.
“There are many investors like us in Bahrain who paid hundreds of thousands of dinars in the off-plan development at the time and are still waiting for work to resume.”
Ms Alauddin said a meeting was recently organised in Khobar for the affected homeowners but only a handful
showed up.
However, she planned to go ahead with the launch of an Arabic and English petition by next month.
“We would like to work closely with the Marina West Home Owners Committee in Bahrain and pursue this at
all levels.
“There is an active WhatsApp group of all the investors in Saudi Arabia.”
Ms Alauddin said that among the points to be discussed with fellow homeowners include refund and compensation for the buyers.
She said some may want refund while others may opt for their units.
“We do not want a developer to take up the project and do a lousy work.
“I will be visiting Bahrain to hold talks with homeowners over the petition.
“If there are potential investors who are willing to complete the project we would like to know about them and even hold talks in Bahrain to present our case.”
Experts have said that close to BD400m would be needed to complete four main stalled projects – Marina West, Amwaj Gateway, Juffair Views and Sunset Hills.
They have suggested public auctioning of the projects and even a bailout fund with the help of the private sector.
The Bahrain Chamber of Commerce and Industry’s Real Estate Committee chairman Dr Hassan Kamal previously told the GDN the funds could be collected once shares for the proposed company, that would be set up in the form of a Special Purpose Vehicle, were issued to the public.
The issue of delayed projects is being overseen by a ministerial committee for construction and infrastructure chaired by Deputy Premier Shaikh Khalid bin Abdulla Al Khalifa.
It has already referred the four projects to a judicial panel, known as the Stalled Property Committee for the Settlement of Real Estate Projects, for
review.
Some of the Marina West investors claimed that the members of the committee were changed earlier this year and new faces were onboard handling the file of stalled projects.
The Central Bank of Bahrain in June announced new regulations that would force real estate developers to deposit money in escrow accounts of licensed retail banks in the country.
It aims to prevent a repeat of the Marina West and other stalled property development that was never completed.
Work so far has resumed on three other stalled projects following the government committee’s intervention.
Work on the Villamar apartment buildings, located at Bahrain Financial Harbour, resumed on August 1 after a three-year hiatus when developer Gulf Holding Company signed restructuring agreements with financiers.
In October, Riffa Views management also made a commitment to finish the luxury residential development.
Bahraini real estate developer Cityview announced in January that it would resume construction of the Landmark Cityview project, in Manama, which commenced in 2009 but ground to a halt in 2011.
sandy@gdn.com.bh
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