Golden Gate skyscraper project investors still in the dark

Clouds of confusion continue to surround the Golden Gate skyscraper nearly a month after its developer’s licence was suspended by a government regulator.

Despite the GDN’s efforts to obtain clarification from both the developer and the Real Estate Regulatory Authority (RERA), investors remain in the dark as to the ramifications of the temporary suspension of the project.

An investor, who spoke on condition of anonymity, said the authority is yet to respond to his query on whether he should continue paying scheduled instalments to the developer.

“Yes, I have received communication from the developer telling me that all is well but, to be honest, I am looking for guidance from the authority set up by the government to protect investors’ interests and so far they have simply ignored my request for information,” he said.

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

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

According to reliable sources, the developer has also sought clarification from RERA, which also ordered the suspension of all sales and marketing activities for the three-month period.

Days after the suspension last month, the developer had reassured investors about the project’s financial position, insisting that construction work continued without delays despite the Covid-19 pandemic.

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 said the project’s financial position was ‘excellent’ and the developer remained committed to the delivery of ‘the highest residential tower in the kingdom’ on schedule by March 2022.He also said that investors’ money was safe in an escrow account.Launched in November 2018, the $130 million project in the heart of Bahrain Bay is a joint venture of Bahrain-based Kooheji Golden Gate and Indian real estate companies Ajmera Realty and Mayfair Housing.

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