THE auction of the stalled Marina West real estate project has been postponed after the reserve price of BD22 million was not met, it has been learnt.
The public sale attempt by Mazad of the distressed development was held at the headquarters of the Justice, Islamic Affairs and Endowments Ministry in the Diplomatic Area yesterday.
The Mazad website showed that the bidding war for the stalled beach-side property complex located off Budaiya Highway had ended.
A group representing more than 200 investors in the project issued a statement in response to the postponement.
“While we are disappointed by the events of the day, we look forward to the next auction,” it noted.
“We call upon the relevant authorities to make their best efforts to achieve a positive outcome.”
According to the statement, “several investors had expressed interest in Marina West in the past” and the group called on the government Committee for Stalled Real Estate Projects to reach out to all those who had expressed interest in the past 10 years, while also publicising the auction regionally and globally.
“Marina West has been assessed as a viable and profitable venture,” claimed the investors.
“The available studies and actionable assessments should be provided to attract potential bidders.
“The higher authorities have recognised that a positive outcome for Marina West is not only in our best interest but also in Bahrain’s best interest.”
The GDN previously reported that the public auction was announced in the Official Gazette.
The potential sale bid came after the developer over the years failed to resolve the project through amicable settlement and exhausting all options.
The Committee for Stalled Real Estate Projects announced in 2015 and 2016 the bidding process of Marina West.
Advertisements were placed in English and Arabic newspapers for potential investors to submit relevant documents to kick-start the stalled development.
Officials have said in the past that some of the stalled projects, including Marina West, were under review due to the complicated debts, obligations and rights.
A feasibility study conducted during that period claimed that the project remained viable, potentially profitable, and required around BD85m to complete.
Hundreds of off-plan investors put their hard-earned savings and high-interest bank loans in the $750m Marina West project after its launch in 2007 covering residential, retail and leisure development land.
Investors from different nationalities, including Bahrainis, bought units in the development, with investments ranging from BD83,000 to more than BD200,000.
The ‘beachfront living’ project was supposed to have been finished in 2010, complete with 11 residential towers consisting of more than 1,000 units, plus a five-star hotel.
However, work stalled in March of that year as the original developer, AAJ Holdings Company, blamed the global financial crisis for bringing the project to a standstill.
Next March marks the 16th anniversary since the groundwork was halted.
Some of the investors have already passed away before a move-in date or settlement could be reached and their surviving families are left in limbo.
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