Marina West investors told: this isn't going ahead
Individual meetings see project confirm stall since late March
The multi-billion Marina West complex in Bahrain has stopped for the last month through a drought in financing and investors are being informed individually, sources familiar with the matter have told CW.
The US $700 million project on Bahrain’s West Coast, that should comprise of 10 towers and a five-star hotel in a 22,860 m2 gated area, has seen no further building work since 30th March, prompting a series of investor meetings. The development is believed to be only 60% sold.
One investor told ConstructionWeek that three meetings have sprung from a makeshift investor consortium, two in Bahrain and one in the Kingdom of Saudi Arabia. Marina West is still hoping for financial aid from wealthy outside investors.
Last week it met with Bin Mhana Holdings, a subsidiary of Qatar Investment Company. Najib Al Naima confirmed that: “We are in talks with the owners of Marina West, who are looking for strategic partners.”
The Marina West investor, speaking on condition of anonymity, said: “It is a matter of ‘wait and see’ what happens with this Qatari investor. Hopefully they [Marina West] will sign him up as an investor to start the project back up and get it finished as planned, just two or more years later than scheduled - however better late than never.”
However, Hussein A. Rasool of Marina West Real Estate Co W.L.L denied that there was any stoppage and that the project was still on track, with “almost 100% of the structural work complete” before the finishing stage and the excavation of the marina.
Al Hamad Construction & Development Company, the main contrator, was unavailable for comment.
Earlier in the month it was revealed that Bin Mhana Holdings has been drafted in to invest in the Blue City project in Oman, another mega complex that is believed to have suffered financial hardship. The project is widely deemed to have collapsed because of a lack of sales.
The board of Al Sawadi Investment and Tourism Company, the parent company, sent out a notice in February calling for investors to vote on the “dissolution of the company and filing subsidiaries”.
Moody’s Investors Service, the rating agency, said that as of November last year, Blue City had sales of US$74.6 million.