Bahrain Real Estate News
Major residential project delayed due to lack of funds
The developers of a major residential project in Bahrain, which is currently 75 percent complete, have blamed the reluctance of banks to finance the development, and defaulting buyer payments, as the primary cause for delay in completion of the project.
Located right behind the Bahrain Financial Harbour, on the Reef Island, Marina Reef, was supposed to be ready in April 2010. However, buyers are still awaiting their dream homes, while a few have begun to demand their money back.
The Marina Reef Real Estate Development is responsible for sale of properties at this site. The company said that the global economic crisis, coupled with regional turmoil over the past year, and frustrated buyers refusing to pay their outstanding dues, have all compounded problems, thereby slowing down construction work.
The company said that the project is now 75 percent complete, and the firm is now making serious efforts to finalize the financing of the project, so that construction work could be resumed. Once construction begins, the project will be completed in six months time.
Marina Reef Real Estate Development, in its statement, said that a huge amount of money has been invested by the company into the project, and the company hopes to secure funding that would allow completion of works in a matter of weeks.
The defaulting buyers are being followed up regularly. The company is committed towards successfully delivering this prestigious project, the statement said.
Marina Reef comprises 165 luxury apartments, comprising single and double bedrooms, with prices of units starting at BD80,000, and the entire project costing BD25mn.
The website of Industry and Commerce Ministry, lists Marina Reef Real Estate Development Company as having an authorized capital of BD3.6mn, issued capital and capital in cash. Ithmaar Bank is a company founder with a 51 percent stake.
Posted on 16/5/2012
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