18 September 2005

DUBAI -- The Al Areen Holding Company (AAHC), yesterday announced three key deals with the UAE, Bahrain and Kuwait's investors at three-day property development event Cityscape 2005, which inaugurated at the Dubai International Exhibition Centre.

The deals reflect positive investors' sentiment about the $750 million (Dh2.753 billion) Al Areen project, which is currently under development in the Kingdom of Bahrain.

Leading UAE-based construction firm, Al Hamad Construction and Development Company (Al Hamad), has acquired a large plot within the development to build a 5-star resort hotel over an estimated 52,366 square metres.

Similarly, GFH Commercial Bank (GFHCB), the wholly-owned subsidiary of Gulf Finance House (GFH), the driving force behind the Al Areen project, also announced that it has acquired a land parcel on which it will, in association with partners, develop a private master-planned environment, Oryx Hills.

The third investor in the mixed-use integrated project is the Kuwait-based Gulf Holding Company (GHC), jointly acquired by Bayan Investment Company K.S.C.C. (BIC) and Gulf Finance House B.S.C. (GFH), which has taken 260,821 square metres within the development -- the Al Areen Downtown land parcel.

The GHC has a paid up capital of KD80 million (Dh1 billion) and is set to be listed in the Bahrain Financial Market and later in other Gulf financial markets.

Announcing the investments, senior representatives of AAHC said that the integrated project continues to be on a fast track development schedule, and has crossed significant milestones with the first of its components -- the Banyan Tree Desert Spa and Resort -- scheduled to be completed and opened by March 2006.

Addressing a Press conference yesterday at Cityscape 2005, Esam Janahi, vice-chairman of Al Areen Holding Company, said: "The uniqueness of Al Areen, which will galvanise the tourism appeal of the Kingdom of Bahrain, and attract a wider range of international visitors to the country as well as the region, is a compelling investment proposition, offering investors a healthy outlook for long-term returns."

"This increased interest is quite evident in the rising number of partners and investors that have committed to the project. All of them are leading entities in their own right, reflecting the total confidence in the vision of Al Areen," he added.

The Al Areen project, which is slated to be fully operational by 2008, has been conceived as a mixed-use project offering a blend of relaxation and rejuvenation facilities, coupled with a host of tourism and leisure activities, hospitality services and residential units with modern amenities and infrastructure. It is a 25-minute drive from the city centre of Manama, a 35-minute drive from the Bahrain International Airport, and is located close to the Al Areen Wildlife Sanctuary and Bahrain International Circuit.

"In line with the investment philosophy of GFH, Al Areen will maximise investor and shareholder returns on a sustained and long-term basis, and contribute to increasing the tourism stake in Bahrain's GDP as well as the region's overall economy," said Janahi.

"We welcome Al Hamad onto the Al Areen project platform as a strategic investor for the development's second luxury hotel," he added.

The land parcel bought by Al Hamad will overlook the water park with views of the Al Areen Wildlife Sanctuary west of the development.

Nashat Sahawneh, Chairman of Al Hamad Construction and Development Company, said: "The resort hotel parcel is one of the central components of the Al Areen development. This acquisition will add significantly to Al Hamad's portfolio of offerings, while enabling it to participate in yet another landmark project in Bahrain."

"We are also excited about Gulf Holding Company joining us on the Al Areen platform," he added.

Commenting on the investment in Al Areen, Faisal Al-Mutawa, Chairman and Managing Director of Bayan Investment Company K.S.C.C. said: "Our decision to invest in Al Areen is based on our confidence in the integrated project's long-term potential in generating sustained returns."

"Moreover, we are very proud to partner GFH to own and develop Al Areen Downtown, which is situated along the main boulevard of Al Areen. Al Areen comprises commercial and residential facilities, luxury apartments, town houses, villas, restaurants, retail outlets and entertainment venues," he explained.

Unveiling the concept of Oryx Hills, Ebrahim H. Ebrahim, General Manager of GFHCB, said: "Oryx Hills, the residential component of the Al Areen development will be spread over a total of 140,000 square metres comprising luxury villas with majestic views of the eastern cliffs and the grand wadi within the development."

BY A STAFF REPORTER

© Khaleej Times 2005