This refers to “Impotent bystander” (GDN, July 5), who makes a viable case for the authorities in Bahrain to compensate stalled project off-plan buyers.
There appears to be a system already in place that enables a developer of failed real estate projects to retain the payments they have obtained from their failed project; no Press reports yet of such cases with the Prosecutor General.
According to one official source, a failed developer and late partner’s estate not only retain full ownership but the developer’s 2016 revised plans for completion are still being considered by the settlement committee.
The only problem is one of financing these revised plans in 2018; just as it was during the project build stage in 2007-2009 also in 2011 with offers of part syndication or full takeover (40 per cent down payment and rest over 12 months). I don’t think the penny has dropped yet that this developer’s over ambitious plans in 2007, 2011 and 2018 were not financially viable.
A solution for completion is relatively simple; identify the funds likely from future off-plan apartment sales of unsold towers then deduct cost to complete 11 residential towers, marina and infrastructure. The residual amount is the upper limit of spend allowable for a bridging loan, build commercial leasehold units, lido and amenities. Spending BD45 million to create a hotel from an original residential tower is not on!
The stalled project settlement committee doesn’t appear to be familiar with multi-tasking or delegation when stating that the next public auction for Amway Gateway is their first priority and not resolving Marina West.
If the powers that be deem the developer(s) to retain site ownership then appoint a board of directors (further option within Decree 66 of 2013). The new board of directors can arrange for an architect and a financier to produce a financial viable completion plan; also, to appoint a construction contractor and thereafter oversee each stage of completing Marina West project. Since the main construction contractor ‘owns’ one of the 11 residential towers, and presumably the major debtor, they would have an interest in completing Marina West if the new board was their sole paymaster.
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