Investors in a stalled real estate development have welcomed the eighth attempt to auction the project.
The Amwaj Gateway last went under the hammer on January 9, but attracted no buyers.
The project was first put up for auction in August 2017 by a government panel at a reserve price of BD36 million, with subsequent attempts to sell off the development also failing to generate interest among buyers.
The new auction date is set for June 2, with a reserve price of BD14.7m, which is a drop from its last reserve price of BD17.5m.
“The Committee for Stalled Real Estate Projects will hold the public auction of Amwaj Gateway on June 2 with a reserve price of BD14,750,000,” said a statement.
It will be held at the Justice, Islamic Affairs and Endowments Ministry headquarters in the Diplomatic Area.
“Those interested to take part in the bidding process are urged to register their details ahead of the auction, or one hour before the scheduled event (noon).”
The $183m (BD70m) project was launched in 2007, and scheduled for completion in 2010.
It was supposed to include 384 apartments, 93 town houses and a hotel tower with 143 rooms.
However, work halted in 2009 due to the global financial crisis and in 2015 it was referred to the government panel.
So far, 65 per cent of 191 units in the East Tower of the project have been completed, along with 40pc of 193 units in the West Tower, 50pc of the planned hotel and 60pc of the town houses.
Bahrain resident Garry Muriwai paid a deposit of BD140,000 for a unit in the project in 2007.
“I believe the government is doing the right thing and I look forward to potential investors bidding in the next auction,” he told the GDN yesterday.
“About 200 homeowners invested between BD20,000 and more than BD140,000 for various units in the project.”
The New Zealander said like most other investors he too has been waiting since 2010 for the project to be completed.
Another investor is Shura Council member Dr Mohammed Al Khozaie who paid BD240,000 for two units.
“We (the investors) have been waiting for years to hear some good news about the completion of the project, or even being compensated,” he told the GDN.
He hoped the auction will decide the fate of the project.
Bahrain Contractors Society board member Hisham Mattar said the recent steps taken by the government panel in dealing with Amwaj Gateway and Marina West stalled projects constituted positive development for the real estate sector.
“These stalled projects are blots on the real estate scene and for years affected the country’s image and investor confidence,” he told the GDN.
“I think the government panel is committed to clear these pending projects and even set an example for other developers to abide by the rules.
“This is a lesson for current and future developers not to fall in the trap of stalled development or delay their projects because it affects banks, consultants, contractors and investors.”
He said the real cause of the problem – be it bad management or corruption – should also be addressed to prevent future cases.
The GDN reported last week that in a major breakthrough in the Marina West stalled project, an Abu Dhabi investor has taken over the development and work is expected to resume as early as September.
sandy@gdn.com.bh
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