Golden Gate investors wary of payments notice

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Home-owners in the Golden Gate project have been advised by the developer to continue paying their instalments, despite the temporary suspension of the project by the Real Estate Regulatory Authority (RERA).

An investor, who spoke to GDN on condition of anonymity, said he received a communication from the company that the instalment payments needed to continue as usual and the suspension of the licence had nothing to do with payments from investors.

“We still don’t know what the non-compliance issue was that forced RERA to take action,” the investor said. “I’m worried. Can they guarantee that the project will not be delayed?”

The GDN reported two weeks ago that the developer had reassured investors about the project’s financial position and that construction work continued without delays.

An emailed message to investors then quoted Anas Al Kooheji, executive director of Golden Gate, as saying the suspension was due to ‘a compliance issue’, and that the company was working with RERA to resolve the matter as soon as possible.

Mr Al Kooheji had said the project’s financial position was ‘excellent’ and the developer remained committed to the delivery of ‘the highest residential tower in the kingdom’.

He also said that investors’ money was safe in an escrow account.

On September 10, the RERA announced the suspension of the licence given to GG Developers, the developer of the project, for three months.

RERA had said the decision was taken as a result of ‘violations’ committed by the developer, based on the provisions of Law 27/2017 promulgating real estate sector regulations.

Multiple attempts from the GDN to contact the company have gone unanswered, as well as a bid for clarification from the RERA.

Launched in November 2018, the $130 million project in the heart of Bahrain Bay, is a joint venture of Bahraini-based Kooheji Golden Gate and Indian real estate companies Ajmera Realty and Mayfair Housing.

The 140,000sqm development consists of two towers with 45 and 53 storeys and 746 apartments.

The project is billed as the tallest residential structure in the kingdom, with 999 car parking bays, spread over seven floors.

Work on the project started last year after the developers announced Golden Gate had become the first in the kingdom to issue fully RERA-compliant contracts to the end-user, having completed all the requirements.

RERA had granted Golden Gate two licences: a developer’s licence, which is required for auditing and qualifying developers, and an off-plan sale development licence, which allowed the project to be developed. At the launch in November 2018, the developer had announced that the project would be completed in 36 months.

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