Bahrain Bay Development B.S.C.(c) has announced that CapitaLand Commercial and Integrated Development Ltd [“CapitaLand”], a subsidiary of CapitaLand Limited, one of Asia’s largest real estate companies, has signed a Memorandum of Understanding to acquire land and develop a $600 million residential and retail zone within the Bahrain Bay development project. Bahrain Bay is a joint venture between Arcapita Bank B.S.C.(c) and a Bahrain-based investment group.
The Memorandum of Understanding relates to the District Centre, the largest single zone available within Bahrain Bay, and covers an area of 45,500m2. On completion, the District Centre is expected to comprise 230,000m2 of built up area, 20% of the total Bahrain Bay project. CapitaLand intends to draw on its international expertise as it forms and leads a consortium in developing entertainment, retail and mix-use developments to transform this part of Bahrain Bay into a vibrant, family entertainment based development with unique retail and residential offerings. CapitaLand joins luxury hotelier Four Seasons Resorts and Hotels and Arcapita, a leading investment firm with headquarters in Bahrain, as the third anchor developer in this $1.5 billion project off the north-east shore of Manama in Bahrain.
“Interest of this level from a company with the global reputation and track record of CapitaLand is a strong endorsement for Bahrain Bay” said Mr. Atif Abdulmalik, Chief Executive Officer of Arcapita. “It is an excellent reflection of the planning and design that defines the Bahrain Bay development. In the competitive real estate market, the support of a partner of CapitaLand’s quality is only achieved through a compelling and differentiated offer.”
Mr. Liew Mun Leong, President and CEO of CapitaLand Group, added “This proposed investment marks a strategic milestone in CapitaLand's expansion into the Middle East. We have established a relationship with Arcapita in Japan and we are now privileged to deepen this relationship through this iconic new project in Bahrain. This prestigious development will heighten our profile within the Arabian Gulf, where we foresee significant opportunities for further investment and development. Bahrain Bay will also serve as a springboard for our network of Asian and European investors to participate in the growing financial and tourism hubs of the Gulf region."
Asim Zafar, Head of Arcapita’s real estate investment line of business, added: “CapitaLand was attracted by the quality of the Bahrain Bay master plan and the unique positioning of Bahrain Bay, as Bahrain’s premium residential, entertainment and business district. Bahrain Bay’s proximity to Saudi Arabia and other major markets, along with Bahrain’s strong economic performance, political stability and favourable land prices, were important contributory factors in their decision making process. We believe these same factors will be decisive as we continue our discussions with other world class developers for the remaining development zones available within the Bahrain Bay masterplan.”
Reclamation work on Bahrain Bay has already commenced, and building work on the infrastructure and the lead developments is expected to commence in January 2007.
