Bahrain: A Multi-Million dollar seafront real estate project that has been stalled since 2009 will be auctioned next month, it has been revealed.
Juffair Views will be auctioned on December 20 after a government panel said yesterday it had exhausted all options on reaching an amicable settlement.
The project with an estimated development cost of $15 million comprising 26 storeys with one, two and three bedrooms and penthouses was launched in 2007 and expected to be completed in 2009.
Last year, it was referred to the ministerial committee for urbanisation and infrastructure chaired by Deputy Premier Shaikh Khalid bin Abdulla Al Khalifa for a review, assessment of debts and protection of investors.
“The panel will hold a special meeting with shareholders of the stalled Juffair Views real estate project on November 29 at Gulf Hotel to discuss developments prior to the public auction,” said a committee statement.
“Procedures are being finalised to start the auction process of the stalled project.
“The public auction of the property will be held on December 20 at the ministry’s headquarters.”
The statement also said that proceeds of the auction would be deposited at the treasury of the Justice, Islamic Affairs and Endowments Ministry.
The judicial committee handling the case is headed by Judge Mohammed Arabi Mohammed Hashim, with members including Judge Mohammed Mirza Amar, Judge Amal Ahmed Abul, Dr Abdulla Taliq, Aarif Rahim and secretary-general Nufal Bubshid.
The ministerial committee had announced in May this year that after scrutinising documents it had concluded that heavy financial commitments would make it difficult for a new developer to carry out the real estate project.
The panel had then said around 90 per cent of the units in the projects had not yet been sold which meant a new developer would not find it feasible to shoulder the outstanding financial commitments.
The GDN reported in 2011 that Bahrain-based developer Mega Real Estate vowed to complete work on the delayed apartment block and deliver the units by April 2012. Officials had then claimed the project was 90pc to 95pc complete and only fixtures and fittings were unfinished.
They claimed the delay was due to materials being sourced from China with the original contractor being unable to complete the work due to manpower issues.
Mega Real Estate took over the project from Durrat Al Bahrain in 2009 and the delays prompted some buyers to take legal action, with some demanding their money back and others complaining they had not received the compensation they were entitled to.
sandy@gdn.com.bh
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