Abraj Al Lulu, Bank of Bahrain & Kuwait join hands to offer Mortgage Loan Facility
Pearl Real Estate Development Company, a consortium of investors from Bahrain, the Kingdom of Saudi Arabia and the UAE, announced that it has entered into an agreement with Bank of Bahrain and Kuwait (BBK) to provide mortgage loan facilities to buyers in the BD 95 million (US $250 million) Abraj Al Lulu development in the Kingdom of Bahrain.
Abraj Al Lulu is Bahrain’s largest private sector freehold residential project and BBK will be the lead financers for the entire project. BBK has already opened a representative office at the sales centre of Abraj Al Lulu to facilitate the mortgage loan facility.
Commenting on the significance of the agreement, Mr. Mohammed Dadabhai, Chairman of Pearl Real Estate Development Company, said: “Abraj Al Lulu has been conceived with the intention of bridging the large demand-supply gap in Bahrain for world-class residential infrastructure. The project has the active support of the government, and our agreement with BBK will promote the project to potential regional investors. The mortgage loan facility will also make acquisition of property in Abraj Al Lulu a hassle-free exercise.”
“Our partnership with BBK, a leading regional bank, for mortgage loans will enable investors to avail world-class home financing. The agreement is also in line with our aim of enhancing financing options for property acquisitions in the Kingdom of Bahrain.”
Under the terms of the agreement, Bahrainis, other GCC nationals and expatriates would be offered BBK’s innovative home financing product. The mortgage loan product has been structuerd in such a way that the credentials to acquire a loan has relatively new features such as low salary requirements and highly competitive interest rates, translating in smaller EMIs.
Further, with the aim of enhancing customer convenience, investors can now avail the facility, which includes an option of a 3-month loan repayment holiday, through any BBK channel or from a dedicated representative office set up by BBK at the Abraj Al Lulu sales centre in Bahrain. These advantages come on top of additional facilities which include sale deeds from the government with resale rights.
Elaborating on the partnership with Abraj Al Lulu Mr. Jamal Hijris, Assistant General Manager, Retail Banking Division, BBK, said: “BBK's partnership with Abraj Al Lulu is a strategy to provide our customers with the best in lifestyle and convenience. Our newly introduced mortgage loan offering is a step in this direction. We have also opened a new exclusive representative office at the Abraj Al Lulu sales centre which is adequately equipped to facilitate customer requests and enquiries.”
In a short span since its launch, 40 per cent of the apartments in the Abraj Al Lulu project have already been sold out. Aiding the rapid sale is the fact that the apartments have been designed keeping in view affordability with prices ranging from BD 65,000 (US$ 170,000 approx) to BD 300,000 (US$ 800,000 approx). Further, construction has also commenced and is scheduled to be completed by December 2007.
Future plans of Pearl Real Estate Development include, expansion across the region with new projects, targeting to further contribute towards the socio-economic development of the respective countries of investment.