Construction in progress
With construction work progressing at the Lagoon Bahrain, over 50 per cent has so far been reserved by Bahraini and GCC nationals, the CEO of Abu Dhabi Investment House told Bahrain Tribune.
Rashid Janahi, who was in Bahrain to sign a musharka loan financing agreement of $32 million, said that the development work was progressing as per the schedule announced by the company at the launch of the project.
"More than 50 per cent of Lagoon has already been reserved. The reservations are mainly by Bahraini and GCC nationals and the good news is that the bookings are from more than one part of the region. The project will be value added for tourism in Bahrain," he said.
The Lagoon Bahrain, with inspiration from bustling 'dining destinations' such as London's Covent Garden and Cockle Wharf in Sydney, provides premium freehold opportunities for new concept food and beverage outlets and boutique retail, a first for the Gulf, which has previously only offered rented commercial space.
Janahi said: "The 55,000 square metre project, which is scheduled for completion by September, lies at the heart of Amwaj Islands' new community. We have reached 40 per cent completion in terms of the foundation and the first floor over the entire project."
He said that the Lagoon Bahrain would open its doors for business as per the announced schedule. The Lagoon has been offered 200 per cent more debt than the required $20 million by a consortium of six Islamic lending banks.
"We have opted to cap our borrowing to just over $30million to secure exceptional returns for our investors.
This means that the $90million Lagoon Bahrain is currently financed with over $41 million of equity and over $32 million of debt from the bank consortium. The rest is financed through pre-sales, currently at almost three-fifths of total units," said Janahi.
"This deal is a positive response to Lagoon Bahrain from seven major financial institutions, giving yet another show of support for this first-time commercial freehold development," said Janahi.
He added: "The ADIH has investment in projects in Bahrain and Qatar - the Qatar Entertainment City, Qatar Energy City. We also have investment in Morocco, Lebanon, and Germany and now we are looking for opportunities in Switzerland. We are also looking forward for projects in India by the fourth quarter of the year."
By Naila Barakat Business Reporter
© Bahrain Tribune 2007
