First Bahrain repays $ 1.5 million loan
First Bahrain, an innovative regional real estate developer, announced today it has repaid in full a US $ 1.5 million loan to Kuwait Finance House (KFH). Maintaining its solid liquidity, the company repaid on the maturity date the three year term loan issued by KFH in 2008 to provide the initial funding for First Bahrain’s flagship project Majaal, an SME-focused warehousing facility.
Located within the Salman Industrial City at the Bahrain Investment Wharf, Majaal warehouse development presently offers 130,000 square feet of secure, flexible and cost effective industrial work space complemented with a range of value-added services focused on elevating the standards of warehousing projects in the region.
Amin Al Arrayed, General Manager of First Bahrain and Managing Director of Majaal said: “Repaying the loan on maturity has been our top priority and reflects our continued efforts and success at improving our business and financial position. First Bahrain’s consistent and conservative approach to the management of resources has enabled us to fulfill our debt commitments despite the ongoing economic crisis. This, in addition to our completing payment for construction of Phase 1 of the Majaal Warehouse development, highlights that we continue to operate in a position of strength.”
“First Bahrain has always adopted a conservative and realistic approach to investment through its focus on domestic demand-driven developments designed to bring enduring value and sustainable prosperity. Our philosophy is to generate real long-term value, for not only investors, but for the Bahrain economy as a whole”, Al Arrayed added.
A leading provider of facilities in support of the SME segment of the Kingdom’s industrial sector, Majaal has made significant progress in 2010. Many local and international businesses ranging from banking to health services and manufacturing are currently taking advantage of the strategic benefits of Majaal. With over 75% of available space already leased, plans are currently underway to begin work on Phase II, which will more than double the size of the facility, offering a total of 280,000 sq feet of leasable space.
Aligned with the government’s Economic Vision 2030, Majaal’s integrated offerings will continue to add value to Bahrain’s economy by continuing to attract foreign direct investment while providing a perfect platform to stimulate growth and diversification of the SME sector.
With strong interest received from investors from neighboring GCC countries, First Bahrain is now actively looking towards the expansion of Majaal beyond Bahrain in the future.
Established on October 5, 2004 in Kuwait as Baraq Al Khaleej Holding Company with a paid up capital of USD 3.5 million, the corporate name was changed to First Bahrain Real Estate Development Company in October 2004 with and an cash injection increased paid up share capital to USD 106 million (KD 30 million) in April 2005.
Kuwait Finance House - Bahrain
Kuwait Finance House (KFH) is considered a pioneer in the Islamic banking phenomenon known as ”Islamic Finance” or “Sharia’a” compliant banking. Kuwait Finance House (KFH) is the first Islamic bank established in 1977 in the State of Kuwait and today it’s one of the foremost Islamic financial institutions in the world.