The development company behind the new, mixed-use Bahrain Marina project have already begun to pre-qualify contractors for the first major phase of construction, according to CEO Yazan Haddad.

The project, which is owned by the Bahrain government's Social Insurance Organisation (SIO) - the state's official pension fund - is a mixed-use scheme that will sit on a 110,000 square metre waterfront site that was previously home to Bahrain's Marina Club, close to the National Museum and Theater site in the capital, Manama.

A new masterplan for the site was created in 2015 by architecture firm Benoy and contains a new, 235-berth marina around which a new yacht club, a 10-screen cinema, a 5,000 sq m family entertainment centre and waterside restaurants and retail units will be built. Alongside this, there will be a new, 400-room hotel and a 594-unit apartment building.

Haddad said that following the appointment of local contractor Alhassanain to carry out marine works at the site in November last year, it is currently tendering for contractors to carry out piling work onsite, with an award expected in September. It has also begun prequalification for phase one, which includes the construction of the leisure and entertainment areas, including the waterside retail, family entertainment, a 2,500 square metre public plaza and the yacht club.

Currently, these initial phases of the work have been funded by the SIO, and Yazzan said that "we are still in talks internally and with finance entities" about the remaining elements.

As a result, he said that he was unable to give an overall development value for the project, but said this number is likely to be revealed next month, along with the name of the operator who is expected to sign a management contract for the five-star hotel.

"We are in final negotiations with a hotel operator," he said. "It's new to Bahrain."

The hotel will contain 250 regular rooms and 150 one- and two-bedroom suites. It will also have an 11,000 sq m beach and a restaurant at the end of a pier offering 360 degree views. The operator will also be responsible for servicing 21 waterfront villas.

Haddad said the project is due to finish in phases, with the first element around the marina due to complete either in late 2019 or early 2020. However, he said that development work will run concurrently on the hotel and the apartment building, which will house seven waterfront homes with their own boat berths.

"We expect that by mid-to-late 2021, the entire development will be in operation."

A report published by property consultancy CBRE in June stated that Bahrain's property market had performed well in the first six months of the year, driven by an improving economy and a long-running shortage of housing.

It also said that heavy investment was going into the four- and five-star hotel business, quoting Bahrain Economic Development Board figures which stated that more than $10 billion worth of hotels and beachfront resorts are set to open in Bahrain over the next five years.

© Zawya 2017