Marina West – Time for a Solution! I was the author of the article on 21st May 2021, ‘Marina West – why has it gone silent?’
I have also noted some similar Press articles from several other commentators, over the past two years, including: Will Marina West buyers ever get justice? (Mike Franklin – 25th January 2022), Auction Marina West (17th March 2022), Marina West Debacle (30th September 2020).
The consensus from these articles, and my discussions with other Marina West investors is very clear. Simply put – it is time for a solution.
I note with great optimism and deep respect for the Bahrain Judiciary, that the Judicial Committee for the Settlement of Stalled Real Estate Projects has been working tirelessly to resolve stalled Bahrain real estate projects – with some great results.
This very positive effort was highlighted in the recent Press article: Top panel working to settle stalled projects in Bahrain (GDN – 10th March 2022). This is truly excellent news, and I am heartened to hear that some investors from other delayed construction schemes have now received both the keys and deeds to their long awaited and hard-earned homes.
We now look to the Judicial Committee for the Settlement of Stalled Real Estate to provide an update and roadmap to resolution for the 12 years stalled Marina West scheme.
I am sure that any definitive feedback would be warmly welcomed by the hundreds of Marina West investors, who regularly scan the Bahrain Press in the hope of seeing some positive progress.
As an investor, who has waited 12 years so far, it seems obvious that the current owners of this development cannot complete the scheme?
I remember reading several historical articles indicating that this group were on the verge of refinancing and relaunching – which, as we know, all amounted to nothing.
Time has clearly proven that any such ambition to complete the scheme by the existing scheme owners is at best highly aspirational and more realistically, just not going to happen.
I am not the kind of character who rushes to judgement – but surely any reasonably-minded person would arrive at the same conclusion after waiting for 12 years?
Perhaps the current Marina West scheme owners believe that 12+ years of property inflation can help them? Simply ‘sitting it out’, hoping that inflationary increases in the scheme asset value will make future project financing more viable? This, of course, is a not a real strategy – it is simply waiting in the hope that the situation resolves itself. Such an approach is neither an equitable nor just way forward for the hundreds of impacted Marina West home investors who continue waiting for their homes?
So, what should happen next?
In my humble opinion, the obvious solution is to auction the Marina West project. More specifically, to auction the scheme to qualified bidders who have the proven and committed resources to complete the project and deliver the promised units to the buyers.
I fully appreciate that there will be some complexity in any such auction exercise.
The existing Marina West structures will need to be surveyed and assessed for viability of completion, (or demolition and replacement).
Potential future developers may have to make initial investment to assess the stalled scheme and determine what they can afford to bid to be able to take over and complete this large scheme on a financially sound basis – all adding transition complexity.
That said, what alternative is there?
After 12 years of waiting, this process must surely start now if this scheme is ever to be resolved?
The worst possible advertising for property investment in Bahrain? I have commented on this matter from the perspective of a Bahrain property buyer – easy for me, as I am one of those purchasers.
We should also look at this scheme from the perspective of those working hard to build the property investment industry of Bahrain and those responsible for the national image of this beautiful country.
The skeletal remains of Marina West serve as a constant reminder to every person that travels nearby or across the causeway that property investment in Bahrain can lead to catastrophic loss and bitter disappointment.
Is it a truly dreadful advertisement for property investment in the kingdom? After remaining so obviously incomplete, in a highly prominent coastal location for the past 12 years, the Marina West scheme has surely become a constant and solemn reminder to any eager international or local investors that they should think again before investing in this market segment?
Should we give up on the Marina West debacle?
I truly think we should not give up.
I think that with support of the Judicial Committee for the Settlement of Stalled Real Estate Projects, I truly believe that this stalled project can be resolved, completed and the long-awaited homes can finally be handed over to the Marina West purchasers.
To my fellow Marina West investors, I encourage you to stay strong and stay positive. Let us see how the committee can help us reach an equitable solution for this long and difficult journey. To getting our keys and deeds.
Peter Hynes
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