Gulf Holding signs with Al Hamad to complete the Villamar Project

Manama, Kingdom of Bahrain, 15 January 2012: Gulf Holding Company, the owners of the integrated residential and commercial complex "Villamar", and the Al Hamad Construction and Development Company, the renowned construction company, have announced signing a Memorandum of Understanding (MoU) recently in a move to resume the construction work on the Villamar project with a target to complete in 18 months.

"We are resuming work soon after delays that took place in the development of the Villamar due to the financial crises. The crisis sent shock waves around the world and affected countless projects everywhere" commented Hisham Alrayes, the Chairman of Gulf Holding Company.

"While it has been a challenge to continue the development from sales proceeds, we have restructured the project to extend short term liabilities and bring new funding partners on board. Accordingly we are pleased today to have Al Hamad as continued partner completing the construction against part ownership in the Villamar towers. Al Hamad is expected to resume work on site once a new project manager is appointed within the next coming few

Weeks" continued Alrayes.

Commenting on the signing of the MoU, Mr. Nasha'at Sahawneh, the Chairman of Al Hamad Construction and Development Company, said, "We are excited to have reached this agreement with Gulf Holding and look forward to beginning work on the Villamar as soon as possible. Villamar is with no doubt the most prime project in the heart of the Kingdom of Bahrain which combines all hospitality, residential, offices and commercial complex all at one sea front location. We believe in the project and our commitment for completing it is demonstrated by us taking ownership in the project itself."

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Villamar
Started in 2007 and built on a man-made island, "Villamar @ the Harbour" is the first integrated residential complex within the Bahrain Financial Harbour Development. A sophisticated and exclusive development, Villamar aims to introduce a new lifestyle and business concept to the region, offering a mix of serviced apartments, hotel rooms and a mix of residential accommodation within three elegant twisting towers. The towers rise from the terraced podium and are linked by sky villas all of which add a luxurious flavor to the development.

The Project comprises over 800 residential units; from luxury penthouses and Sky and Terrace Villas, to apartments and luxury hotel rooms, and combines other facilities including a health club and spa, swimming pools and other recreational amenities. The Ocean Front Boardwalk is publicly accessible and provides an array of indoor and outdoor cafes and restaurants along with boutique retail shops. With its sophisticated and elegant design and variety of uses, Villamar is a truly exotic development at the heart of Bahrain's ever expanding financial district.

The current status of the construction is 70% completed. The estimated value for the entire completed project is in the order of USD 650mn.

Al Hamad Construction and Development Company
Al Hamad Group of Companies has been at the forefront of the construction industry for more than 20 years and has the capability to carry out design, execution, and maintenance of both conventional and turnkey construction projects utilizing a workforce of over 18,000 employees in the Middle East.

The Groups' in-house capability to design and execute all activities related to the construction industry, from pre-tendering conceptual stage, through design and construction to handover to the client is a feature that distinguishes the Al Hamad Group of Companies from most other companies in their field. This ability has contributed enormously to the growing success of the Al Hamad Group.

The Al Hamad Group of Companies continues to build on the basis of the same core values since it was first established - Safety, Quality and Leadership.

The Groups' plans for the future are to continue expanding and growing to be the leading Group of Companies in the construction and development industry in the Middle East and North Africa.

For further information please contact:
Amal Turki
Head of Corporate Communications
Tel: +973 17538538
Email: aturki@gfh.com
Website: www.gfh.com