First Bahrain returns to profitability in 2010
First Bahrain, an innovative regional real estate developer, held its Annual General Meeting (AGM) at its headquarters in Kuwait to discuss the company's achievements and the 2010 financial report.
Despite the challenging environment, the company reported a net gain for the year, overcoming losses posted in 2009. The company began generating operating revenue from its delivered projects in 2010 and continued to reap valuable benefit from its consistent and conservative approach to the management of resources.
Speaking at the AGM, Salah Ahmed Al-Wuhaib, Chairman of First Bahrain said: "I am pleased to hold this annual meeting and share with you the Company's key accomplishments for 2010. With its ideal location and unit sizes that meet the requirements of small and medium enterprises (SME's), company’s innovative warehousing development Majaal managed to attract 14 tenant companies across diverse range of sectors. Over 70% of the leasable space in the development's first phase has now been occupied."
“For the year ended 31 December 2010, First Bahrain is reporting profits of USD 307,515 compared to losses of USD 8.73 million in the prior year. This improvement in performance was a direct result of the Company’s success in leasing the Majaal property, which contributed to an overall increase of USD 1.73 million in the investment value of the Company's investment properties, compared to a loss of USD 7.64 million in the value of those properties during 2009”, Mr. Al-Wuhaib added.
Speaking on First Bahrain’s plans for the year ahead, the Chairman said, "Moving ahead this year, we will focus on the expansion of the second phase of Majaal, which will more than double the size of the facility, offering a total of 270,000 sq feet of leasable space. We are also preparing to expand the Majaal SME-focused warehousing facilities into the Kingdom of Saudi Arabia. We are in advance planning on this effort and we hope to be making major announcements about a partnership to facilitate this expansion soon.”
Addressing the shareholders and guests at the AGM, Amin Al Arrayed, General Manager of First Bahrain and Managing Director of Majaal, said: “As we move ahead confidently, yet prudently in the current challenging times, I extend my sincere thanks to the Board of Directors for their unwavering confidence in our efforts and their wise guidance in providing direction and accountability. Building on the success of Majaal’s proven business-model, First Bahrain will continue to invest in realistic, demand-driven projects in Bahrain and the region, which contribute to the Kingdom of Bahrain’s Economic Vision 2030 and promote real sustainability.”
He also thanked First Bahrain management and all company staff and expressed gratitude for the constant support that the company receives from its clients, partners, stakeholders and the ongoing confidence they have placed in the company and in its leadership.
First Bahrain’s integrated offerings will continue to add value to Bahrain’s economy by attracting foreign direct investment while providing a platform to stimulate the growth and diversification of the economy.
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.