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Bahrain: Seef Properties plans new venture

Bahrain's property major, Seef Properties would unveil in the second-half of the fiscal its premier serviced residence venture, Fraser Serviced Apartments Seef, in association with international serviced residence chain, Fraser Serviced Residence Limited.
The global player boasts of properties in Asia and Europe and major gateway cities across the globe, including Bahrain. Fraser runs serviced apartments in countries such as Singapore, France, United Kingdom and Thailand.
"This project will result in developing Seef Properties into a combined shopping, entertainment and hospitality venture," said the company Chairman, Abdulrahman Yusif Fakhro, addressing the annual general meeting of the premier real estate and property major of the Kingdom yesterday.
"We will also explore possibilities of entering into joint ventures either as a facility manager or equity owner in real estate development and construction projects in the Kingdom. This is our commitment to the people of Bahrain," he affirmed.
Further, a detailed plan was being finalised to improve the quality of some of the properties of the group to boost returns. The property major also appointed an external consultant to carry out a study to assess the present company structure and present an action plan to take it forward in the wake of growing competition.
The annual general assembly yesterday approved the annual results for 2007.
Total net profit for the year 2007 reached BD22.80 million compared to BD6.58 million, up by 246 per cent which was largely contributed by the recognition of unrealised gain in fair market value of investment property. The fair market valuation carried out by an independent agency put the aggregate market value of the company at BD74.72 million and in line with the accounting policy, the increase resulted in recognition of unrealised gain of BD14.64 million for the year 2007.
"However, as a matter of prudence such unrealised gain will be recognised as part of shareholders' funds and is not available for distribution." A dividend payout amounting to 10 per cent of the paid-up share capital, BD4.6 million was given the green signal.
Operating profit increased by 169 per cent over 2006 to reach BD8.16 million (2006: BD4.82 million).
"This has been achieved by renewal of most expiring leases, new occupancy and increased efficiency."
Seef Mall, he said, continued to be the preferred destination for retail shopping and family entertainment. The year witnessed growth in the leasing income due to near complete occupancy of properties owned and managed by Seef .

By K.V.S. Madhav Senior Business Reporter

© Bahrain Tribune 2008

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