Bahrain's Golden Gate project ‘on track despite pandemic’

Launched in November 2018, the $130mln project in the heart of Bahrain Bay

  
Image used for illustrative purpose. One of the last pre-cast concrete panels, is lifted onto the top of the The Breaker in Manama, May 7, 2014.

Image used for illustrative purpose. One of the last pre-cast concrete panels, is lifted onto the top of the The Breaker in Manama, May 7, 2014.

REUTERS/Hamad I Mohammed

The Golden Gate management has assured investors that the project’s financial position is ‘excellent’ and construction work continues to progress without delays, despite the current pandemic.

In an emailed message to investors yesterday, Anas Al Kooheji, executive director of Golden Gate, said the developer remains ‘committed to the successful delivery of the highest residential tower in the kingdom’.

The statement comes days after the Real Estate Regulatory Authority (RERA) suspended the licence given to GG Developers, the developer of the project, for three months.

RERA 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.

Mr Al Kooheji told investors that the suspension was due to a ‘compliance issue’, and that the company was working with RERA to resolve the matter as soon as possible, ‘taking into account the interests of our investors, which is our first priority’.

“We have issued this letter to clarify and address any questions you may have on the subject and to reassure you that the project is in an excellent financial position and we will remain committed to the successful delivery of the highest residential tower in the kingdom. In spite of the current pandemic, we are proud to inform everyone that the construction work is currently progressing in full swing without any delay,” the statement said.He also said that investors’ money was safe in an escrow account.

“It is also very important for you to know that all your money is in the escrow account that is managed by the bank and supervised by the Real Estate Regulatory Authority, and all your transfers and deposits are kept in this account to disburse the project and fulfill its construction obligations,” he added.

Asserting that the suspension would not have any impact on home-buyers investment in the project or on the progress of construction at the site, Mr Al Kooheji said the management would continue to provide first-hand updates on ‘all developments in this regard’.

However, an investor, who spoke to the GDN on condition of anonymity, said although he appreciated the communication from the developer, some questions remained unanswered.

He added: “I’m not too worried but what does the suspension actually mean? Are they still permitted to receive money from investors? Can they guarantee that the project will not be delayed? And, what non-compliance issue forced RERA to take action?”

The company has not responded to several GDN requests for a comment.

Tallest

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 stories and a total of 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.

avinash@gdn.com.bh

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