Arcapita's Bahrain Bay HQ tenacy under threatby CW Staff on Mar 20, 2012
Arcapita Bank’s occupancy of its headquarters in Bahrain Bay may be threatened after the company filed for bankruptcy protection in the United States.
In a statement the bank said that the move was designed with “the goal of developing and confirming a plan of reorganisation.”
“Arcapita’s Board of Directors has approved this course of action as the most effective way to protect their business and assets”, the statement added.
However, it appears that the Bahrain Bay building in which Arcapita’s headquarters are based is not part of the bank’s assets.
The $266m building, which was the first constructed in the bay development, was sold and leased back to Arcapita following its completion in August 2010. It was designed by Chicago-based SOM and is one of three anchor tenants for the Bahrain Bay masterplan, also designed by SOM. The others are the Four Season Hotel, currently under construction, and Capita Land's Raffles City.
The leaseholder is now part of the creditor negotiation process which is expected to be resolved in the next six to twelve months.
The bank says that it has been negatively impacted by the Eurozone crisis which has led to its inability to refinance a $1.1bn financing facility due at the end of this month.
Arcapita CEO, Atif. A. Abdulmalik, said in the statement that negotiations had started several weeks ago to extend the financing facility to three years.
“However, the actions of certain non-bank creditors have precluded Arcapita from reaching such a consensual resolution before the March 28th maturity date, jeopardising Arcapita’s ability to satisfy its fiduciary duties to stakeholders,” he added.
“The filings offer Arcapita the necessary protection it needs to complete productive negotiations with all parties.”
Bahrain Bay last month announced that 65% of its land parcels had been sold and that utilities and infrastructure works were also progressing well and now largely complete. The combined current committed value of construction activity in Bahrain Bay exceeds $660 million.
Bahrain Bay also announced that Khaleejcapita, a major regional real estate investor in the luxury retail and hosiptality sector, has started construction of the JW Marriott Bahrain Hotel. The five star hotel will have 274 rooms and 120 residences, and is set to open its doors to guests in 2016.
- India's Amity to launch $54.5m campus in Abu Dhabi
- Burt Hill JV wins drug addict rehab design deal
- Problems at UK arm hits Balfour Beatty's profits
- MMG begins arbitration with Petrofac over debts
- Dubai duo mop up more business at WETEX event
- Drake & Scull wins $49m Qatar MEP contract
- MBR city will take ten years, says Nakheel CEO
- Nakheel issues brace of maintenance tenders
- Enterprise Qatar to hold workshops for SMEs
- Four new Oman stadium projects tendered