HOMEOWNERS in the long-stalled Marina West development are seeking urgent government intervention for a “fair and just” outcome.
The new appeal comes ahead of the 11th anniversary since the project was halted in March 2010.
There are more than 450 buyers of different nationalities who invested their life savings in the $750 million project after it was launched in 2007. It was supposed to have been completed in 2010, with 11 residential towers consisting of more than 1,000 units and a five-star hotel.
However, work stalled in March 2010 with the developer blaming the global financial crisis for bringing the project to a standstill.
Since then, investors have been waiting for some good news about the project.
A group of Marina West investors contacted the GDN and issued a fresh plea to authorities to end the stalemate.
“After 13 years of waiting, unit owners in the Marina West project have not received their property nor have we received any compensation or settlement of our contractual rights,” said the plea, issued by 200 investors, which was sent to the GDN.
“Hundreds of individuals in 2007, including many foreign nationals, purchased units in the project developed by Marina West Real Estate Project chief executive Mahmood Janahi, and signed contracts confirming a completion date by the end of 2009.”
They said over 400 buyers from more than 30 countries paid about $175m with many using their pensions and life savings for the investment.
“Sadly, several purchasers died waiting for justice in the past decade,” the group said.
“The rest of us remain hopeful that a fair and just outcome is still possible.”
The buyers claimed, in the letter, that after failing to meet the contractual delivery date, Mr Janahi alleged “lack of funds” when construction stalled in 2010 – and later sent a letter to all investors assuring that his efforts were “currently at a very advanced stage”.
“To date, there has been no further report by the chief executive on the status of the project, no further construction and no offer of a fair settlement to purchasers,” the letter said.
They requested a fair and just outcome – “one that protects the investments of all purchasers and preserves the interests of any new investors”.
“We are confident that the successful completion of the MW Project will promote Bahrain’s standing and reputation as a rules-based country, enhance confidence in Bahrain’s investment environment, and contribute to its economic prosperity,” the letter said.
The homeowners have further requested authorities, including the Royal Court and the Judicial Committee for Settlement of Stalled Real Estate Projects, to respond to their appeal.
“The MW Group trusts that a fair and just resolution is possible before March 2021 – the 11th anniversary since the project was stalled,” the letter said.
The homeowners, between 2011 and 2015, sent numerous petitions to authorities and even met a government panel handling the files of stalled properties. In April this year, they sent a petition to the Royal Court.
The GDN reported in July last year that a survey was sent out by the Marina West Real Estate Company to investors after developers from the UAE stepped in to complete the project.
One option offered to investors was a full refund once the project is completed, if they wish to pull out of their purchase.
Buyers who don’t want to wait were allowed to terminate their contracts immediately and get 50pc of their money back, with those payouts expected to start as early as September last year.
Under the third option, investors who preferred to go ahead with their purchase would be able to do so, though the asking price was revised up to around BD1,200 per square metre from the original starting price of between BD600 per sqm and BD900 per sqm.
However, a 20 per cent discount was offered to investors who had already paid more than 75pc of the original asking price, or 10pc to those who had paid between 50pc and 74pc.
A company spokesman told the newspaper that work on the development was set to resume in September last year with completion set for September or October 2022.
However, it is believed that the deal with the UAE developers did not go ahead.
Marina West company officials could not be reached.
Marina West, Sunset Hills and the Elegant City Development Project are three stalled projects currently under review by a government judicial committee.
Luxury
The $100m Sunset Hills was also launched in 2007 and included 300 real estate units, including villas and luxury apartments which were supposed to be completed in 2009. The Cabinet referred the Elegant City Development Project to the government committee in November last year after being deemed as a stalled project.
sandy@gdn.com.bh
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