BAHRAIN BAY ATTRACTS $600 MILLION SINGAPOREAN INVESTMENT INTO BAHRAIN

Published May 4th, 2006 - 07:12 GMT

Bahrain Bay Development B.S.C.(c) announced today 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.

 

About Bahrain Bay Development B.S.C.(c) (www.bahrainbay.com)
Bahrain Bay, a joint venture between Arcapita and a Bahrain-based investment group, will be a balance of commercial, residential and retail spaces set around the Manama waterfront and the centerpiece will be the Kingdom’s first Four Seasons hotel. The project will be executed in three distinct phases. Phase One will involve a 430,000m2 land reclamation and infrastructure development, which commenced in January 2006. Phase Two will involve the construction of the anchor developments, the Four Seasons hotel, and the new global headquarters building for Arcapita and is scheduled for completion in early 2008. Phase Three will involve other development partners, such as CapitaLand, for the development of residential, retail and commercial sub-projects around the anchor developments. CapitaLand’s District Centre is due for phased completion by 2009. At final completion, expected in December 2010, the total built area will be over 1.1 million m2.  The Bahrain Bay sales centre is in Manama and can be reached on +973 16 55 66 77.

About CapitaLand Group (www.capitaland.com)
CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multinational company's core businesses in property, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. The company's property and hospitality portfolio spans more than 70 cities in 18 countries. CapitaLand also leverages on its significant real estate asset base and market knowledge to develop real estate financial products and services in Singapore and the region. The listed subsidiaries and associates of CapitaLand include The Ascott Group, Raffles Holdings, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust and Australand, which is listed both in Singapore and Australia.
About Arcapita (www.arcapita.com)
Headquartered in Bahrain with offices in Atlanta and London, Arcapita’s four principal lines of business are corporate investment, real estate investment, asset-based investment and venture capital. To date, the Bank has completed 52 transactions with a total value exceeding $11 billion and has an equity capital base of approximately $400 million. Arcapita’s mission is to provide innovative and distinctive investment opportunities that generate superior risk-adjusted returns, whilst adhering to Islamic principles.


 


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