Manama: A newly formed company will now handle the stalled Amwaj Gateway project and plans to soon resume work after obtaining approvals.
The GDN reported yesterday that Bahrain-based investment firm Esterad successfully bid for the project at a reserve price of BD14.7m with no other buyer coming forward, during the auction held on Sunday at the Justice, Islamic Affairs and Endowments Ministry headquarters in the Diplomatic Area.
Esterad announced yesterday it was creating a Special Purpose Vehicle(SPV) with Promoseven Holdings that will represent ownership of both entities in the project.
“We believe in the Amwaj Gateway project as it is strategically positioned at the entrance of Amwaj Islands, located right on the sea, and is in close proximity to all major landmarks of Bahrain,” said Promoseven chairman Akram Miknas.
“This prime positioning coupled with the unique characteristic of having a private beach provides an unparalleled offering to the upscale residential market in the kingdom.”
Esterad general manager Chandan Gupta said they were pleased to win the bid and secure the project as part of their strategy to invest in the Bahrain market and support local economy.
“We believe this is an opportune time for investing in this region, especially in Bahrain, given that the macroeconomic fundamentals of the GCC have stabilised and are earmarked for growth in the coming years, which will reflect positively on this investment,” said Mr Gupta.
Esterad Real Estate head Abdulla Noorudin said they plan to resume work and sales once they finalise all detailed drawings and obtain approvals.
The project first went under the hammer in August 2017 at a reserve price of BD36m set by the government’s Committee for Stalled Real Estate Projects.
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, 65pc 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.
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