The Bahrain-based Shamil Bank has incorporated the Al-Marsa Real Estate Company in cooperation with YBA Kanoo Holdings and Al Saraya Properties. The new company’s objective is to implement the Al-Marsa Floating City Project.
The project’s estimated cost is approximately eight million Bahraini dinars ($21.2 million) and will be financed with 100 percent equity, of which 50 percent will be contributed by Shamil Bank, 25 percent by YBA Kanoo and 25 percent by Al-Saraya Properties. Al-Saraya Properties will act as the developer and marketer of the project and Shamil Bank will take up the role as financial manager and advisor.
Al-Marsa will be developed on a net area of approximately 53 thousand square meters on the southern tip of the real estate development commercially known as Amwaj Islands. To date, land reclamation from the sea has been completed and infrastructure laying is underway.
Amwaj is located northeast off the coast of Muharraq Island with a total area of approximately 2.8 million square meters. The project will include chalets that are built following the model of the world renowned Port Grimaud in the French Riviera, in order to create a water-based lifestyle community living within a network of 36 meter-wide canals and elongated, 60 meter-wide islands.
Al-Marsa will encompass about 274 chalets as well as sea and water canal views. Each residence will have easy access by land and water and will have its own private mooring for yachts of up to 70 feet long. It is the first development of its kind in The Kingdom of Bahrain that may be considered for either primary residences or weekend getaways in a resort-like setting including all the necessary amenities and ancillary facilities.
Shamil Bank will soon make a portion of its investment in Al-Marsa available to other investors through a restricted fund to be created for this purpose. The Fund will be issued by Shamil Funds Company with the proposed name of Al-Marsa Real Estate Fund. The Fund will be recommended to high net worth individuals and select institutional investors in Bahrain and countries of the Gulf Cooperation Council (GCC).
The Fund will be closed-end with an expected term of five years and will track the performance of Al-Marsa and its project. During this time, the Fund is expected to make semi-annual distributions to investors. Shamil Bank estimates the net return to investors at 15 percent per annum over the life of the Fund.
In due course, Shamil Bank will introduce a home Morabaha financing program for prospective buyers of the chalets through its commercial banking operation. There is a great deal of interest already being shown in the project by prospective buyers from The Kingdom of Bahrain, residents of the Eastern Province in the Kingdom of Saudi Arabia, as well as residents from Kuwait and Qatar. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
