Bahrain - An auction date looks set to decide the fate of Marina West, Bahrain’s longest stalled major development project ... with a reserve price of BD22 million.

A government committee has announced the potential bidding war for the stalled beach-side property complex located off Budaiya Highway will start on November 9.

The Committee for Stalled Real Estate Projects has announced the details in the Official Gazette.

It states the project covers two plots of land under registration numbers (2007/2403) and (2007/2404), with title deed numbers (114266) and (115803).

The auction will be held on the first floor of the Justice, Islamic Affairs and Endowments Ministry building in Diplomatic Area at noon. “The project shall be sold as a single package deal,” stated the Gazette.

Project investment sources, who declined to be named, appeared divided over the chances of securing a savour. One described the asking price as a ‘snip’ and ‘very attractive’ whereas others suggested the option of ‘continuing the build or knocking it down and starting again’ remained a ‘challenging consideration’.

The GDN earlier reported that a government committee reviewed the project on October 20, following which the term and date of the sale were decided.

“The property is being sold pursuant to the decision of the committee permitting its sale in accordance with Decree Law no (66) of 2014,” stated the Gazette.

“Secondly, the property is a mixed-use real estate development project with a total built area of approximately 354,199sqm, comprising 11 residential towers and commercial spaces.

“The base price has been set at BD22m based on valuation reports submitted to the committee.”

Mazad Bahrain has been appointed to carry out the public auction procedures.

Bidders must deposit a preliminary guarantee equivalent to 10 per cent of the base price before the auction date.

The successful bidder must pay the remaining balance to the Justice, Islamic Affairs and Endowments Ministry within one month from the date of the auction.

In addition, the successful bidder must pay 3pc of the awarded price as administrative fees.

“The property will be delivered vacant to the successful bidder after full payment of the price and expenses and once the auction decision becomes final,” it adds.

“The property will be delivered free of any mortgages or encumbrances.”

The Marina West auction follows after the developer over the years failed to resolve the project through amicable settlement and exhausting all options.

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 $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.

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.

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 in September that a group of investors launched a fresh plea requesting the authorities ‘find a fair resolution’ to end their ordeal.

Interested parties are invited to contact Mazad Bahrain at 17778887 or via email at marinawest@mazad.bh, or attend in person at the specified date, time and location.

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