Bahrain - Investors from around the world in the long-stalled Marina West real estate project are breathing a sigh of relief after it was finally auctioned off for BD19.8 million yesterday.

Saudi Arabia-based Sumou Holdings successfully met the reserve price in the Mazad sell-off, which took place at the headquarters of the Justice, Islamic Affairs and Endowments Ministry in the Diplomatic Area, and overseen by the Committee for Stalled Real Estate Projects.

A group representing more than 200 investors in the project issued a statement in response to the purchase.

“Our group of purchasers from all parts of the globe is pleased that the auction of the Marina West project came to a positive conclusion,” it noted.

“We congratulate Sumou Holdings on their successful bid on a promising and profitable venture.”

The investors noted that Sumou Holdings has one month to complete the payment on the project, after which creditors will receive their payments within two months.

“We trust that, as promised and as provided in the laws of Bahrain, the interests of the purchasers will be protected and prioritised,” they added.

“We look forward to hearing from the Justice Ministry regarding the next steps.”

The purchase is expected to provide relief to hundreds of off-plan investors, who 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.

According to a recent social media post by Mazad, the project’s scope will now feature 10 residential towers, with 1,024 units and a 42,000-square-metre hotel tower with 144 rooms and suites.

However, work stalled in March 2010 as the original developer, AAJ Holdings Company, blamed the global financial crisis for bringing the project to a standstill.

In 2015, the Committee for Stalled Real Estate Projects first announced that the project would be auctioned.

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 Marina West project remained viable, potentially profitable, and required around BD85m to complete.

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

It has now been 15 years, and earlier this month the GDN reported that the Mazad auction was postponed after the initial reserve price of BD22m was not met. A few days later the reserve price was dropped to BD19.8m.

“We wish to thank GDN for giving us a voice and for keeping a spotlight on the Marina West project throughout the years,” the investors added, in their statement.

“Last but not least, we extend our thanks to the Justice Ministry and other Bahraini authorities for their efforts to end our suffering – finally bringing this long saga to an end.

“This is a good day for us and for Bahrain.”

According to online reports, Sumou Holdings officials are aiming to complete the project in three years, with an additional investment of close to $100m and will be setting up a local company to carry out the remaining development, marketing and project operations associated with Marina West.

Sumou Holding chief executive Saeed Al Nahdi noted that the project, located on Bahrain’s west coast, would be the perfect spot for the company to expand its footprint while still serving demand from their existing market.

“We hope to have a presence in Bahrain through this project,” he added.

“The Marina West project is located on the western coast of Bahrain, close to Saudi Arabia, where our primary markets is located.

“We know that the demand is there, and we believe that as a company we have the experience for this project to see the light, and thus for Bahrain to benefit from it.”

Mazad confirmed that 10 per cent of the BD19.8m was received with the remaining amount to be paid in 30 days.

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