Bahrain - Marina West, Bahrain’s longest stalled major development project, is set to go under the hammer following a decision by a government committee.

The Committee for Stalled Real Estate Projects has announced that a public auction will be held, details of which will be announced later.

The move comes after it revealed that it had received and rejected a letter from the developer’s representative ‘requesting an additional grace period to resolve the project’s delays’.

This was highlighted in the latest issue of the Official Gazette under the title: ‘The decision of the Committee for Stalled Real Estate Projects No 2 for the year 2015 (Marina West)’.

“After studying the developer’s request in light of the stalled project for more than 10 years, the committee decided to review the project,” stated the published decision.“All means were exhausted for resolving the project through amicable settlement,” it added.

“It has also been proven that the developer is not competent to manage the project due to the failure to submit an acceptable plan and address the delay within the legally prescribed time limits.”

The announcement in the Official Gazette stated that no new developer had come forward to complete the project considering its size and debt obligations.

“The committee has determined that the best course of action is to sell the project through a public auction,” it added.

The project hearing has been postponed until October 20 to determine the terms and date of the sale.It’s still not clear what the likely outcome of a public auction will be for the hundreds of investors who paid up front and hoped to move in to the dream homes on the beach front.

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 $750 million Marina West project after its launch in 2007 covering 345,000 square metres of 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 off Budaiya Highway 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.

Mona Khalil, an investor in the project who jointly purchased an apartment with her brother, Mohammed, for $210,000, said yesterday the government committee’s latest announcement – “recognises the incompetence of the developer”.

“We hope that the public auction is conducted in a manner that ensures a fair settlement for all the purchasers and other creditors,” said the 59-year-old public international lawyer based in Vienna“We thank the Bahraini authorities for finally hearing our appeal.

This is a failed developer not a failed project.”Ms Khalil hoped that the prospective bidders recognise the potential profitability of the Marina West project. “A happy ending to this long saga is not only in our best interest but also in the best interest of the Kingdom of Bahrain,” she added.Next March marks the 16th anniversary since the groundwork was halted ... and the wait continues for the investors.

Some have already passed away before a move-in date or settlement could be reached and their surviving families are left in limbo.

The GDN reported last month that a group of investors launched a fresh plea requesting the authorities ‘find a fair resolution’ to end their ordeal.

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