THE new developer of one of Bahrain’s flagship property developments has promised that cranes will start moving again on site next week … much to the relief of investors who were left scrambling for answers when construction work stopped five months ago.
Grnata Group, which acquired the prestigious Golden Gate Towers project in March last year after the previous developer lost its licence due to violations, told the GDN that it will soon announce a new contractor to finish the project on Bahrain Bay.
“The main reason of project stoppage is because the previous main contractor faced a financial issue, where he was unable to assign workers on site and was unable to provide resources and materials due to the lack of his liquidity,” a Grnata spokesperson said.
This led to Grnata deciding to release the main contractor from the project and the Real Estate Regulatory Authority (RERA) imposing ‘several conditions and criteria’ for resuming the project with a new one.
The new developer has blamed the previous contractor, whose name has not been revealed, for ‘failing to adhere’ on its commitments and making ‘illogical excuses’ resulting in further delays to the project, which was supposed to be delivered by the end of the year.
“As a result, Grnata decided to remove the main contractor and appoint a new one as per RERA requirements,” she added. “The new contractor will work to minimise the delay and complete the project within a reasonable time-frame and with high quality.”
After work restarts, Grnata said it would invite investors to visit the site early next year and has promised to report progress on the project on a monthly basis.
One concerned investor, who asked not to be named, said: “This news comes as huge relief and we hope they keep true to their promises. The issue has always been over the lack of information.”
Although RERA is yet to respond to questions from the GDN, the developer’s attempt at clearing the air is likely to reassure investors, many of whom voiced concerns about the project which has been mired in controversy for the past few years.
Grnata has also stated that homeowners not wanting to continue with their investments will be able to get a full refund by raising a request through an official letter or email.
Launched in November 2018 with a declared investment value of $130 million, the Golden Gate project was a joint venture between Bahraini-based Kooheji Golden Gate and Indian real estate companies Ajmera Realty and Mayfair Housing.
It was billed to become the tallest residential structure in the kingdom, with a total of 746 apartments housed in two towers of 45 and 53 storeys.
Construction work started in 2019 and the project was set for completion in 36 months.
It first ran into trouble in September 2020 with RERA suspending licences awarded to Golden Gate Developers for three months citing ‘serious and repeated violations’.
The licences were cancelled in December 2020 as the former developer failed to implement the directives of RERA to address the violations.
The regulator said it was forced to take the decision after exhausting ‘all the legally prescribed measures and notifications, including the imposition of fines’.
Grnata Group’s acquisition of the Golden Gate project for an undisclosed sum was announced in March last year, with RERA saying a ‘comprehensive and appropriate solution’ meant that home-buyers wishing to terminate their contract would get a full refund and Al Hidd Real Estate of Grnata Group would complete the project in the agreed time-frame.
Indian media reports last year said Ajmera Realty and Mayfair Housing had sold their 50pc stake in the project to Grnata for $33 million.
avinash@gdnmedia.bh
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