Property Exhibition

Bahrain Society of Engineers (BSE), supported by the Bahrain Chamber of Commerce and Industry, will organise the fourth edition of the Bahrain International Property Exhibition 2007 (Bipex ‘07), at Bahrain International Exhibition Centre from November 28 to 30 under the patronage of Shaikh Khalid bin Abdulla Al Khalifa, minister of the Prime Minister’s Court. With
numerous exhibitors

from the real-estate, property-development as well as real-estate consultancy and financing sectors across the region and other nearby countries, the show is expected to offer visitors the full spectrum of services required to facilitate the process of real-estate investment. “Our aim is also to spotlight development in the Kingdom, bringing investors to Bahrain,” said Mohammed Khalil Alsayed, BSE president. “As part of the marketing strategy, we have already appointed many media partners, including newspapers, magazines and TV channels, for marketing this show within a wide spectrum of audiences. The last exhibition, last November, received about 8,000 visitors, and this time we are expecting a wider response from exhibitors and visitors from Bahrain, GCC and other parts of the world.”

Investment News

Bahrain-based International Investment Bank (IIB) yesterday announced the launch of a new $65 million property fund, which will invest in the development of land located within the Danet Abu Dhabi Master Development Project, in Abu Dhabi.

The new fund, IIB-Abu Dhabi Properties 1, will be 66.7 per cent owned by IIB, with the remaining 33.3pc owned by the UAE-based United Friends Company (UFC).

It will purchase two plots of land at Danet Abu Dhabi and will develop the land into a mixed-use, 21-storey twin-tower building.

One of the towers will comprise exclusively of offices, whilst the other will be a mix of office and residential units.

The building will also include shops and entertainment facilities, as well as car parking for 632 cars.

The office and residential units will be let initially and then sold.

The fund will exit from the investment within four years and is targeting an annual Internal Rate of Return (IRR) of 24pc.

"Both residential and office property markets have seen significant growth in Abu Dhabi and both markets are set to deliver future growth due to a number of factors, said IIB chairman Saeed Alfahim.

"Abu Dhabi's population growth, which is expected to grow by 6.9pc between 2006 and 2010, is driving a need for new housing units.

"Demand for state-of-the-art office units remains strong, and despite the upcoming supply, market projections indicate high demand and occupancy rates will continue in the coming years.

"Both office and residential markets have seen increases in property value as well as rent. Rental rates for the residential market in prime areas have increased by 22pc from 2005 to 2006.

"It is projected that residential rents are likely to rise at around 10pc to 12pc annually for the next three years. Equally, it is expected that commercial rents will increase by 10pc to 12pc annually for the next two years."

The government of Abu Dhabi has also introduced new policies aimed at driving further growth.

The Abu Dhabi Tourism Authority plans to double the number of tourists visiting Abu Dhabi to three million by 2015, which will encourage further expansion of real estate activity in the hotel industry and commercial sector in Abu Dhabi.

The government has also relaxed real estate ownership restrictions over the past few years, which has fuelled significant real estate activity.

Mega projects such as Al Raha Beach, Shams and Reem Island projects have already started, providing a much needed impetus for real estate activity in Abu Dhabi.

"We believe the Abu Dhabi real estate market offers the potential for superior returns for our investors," said IIB chief executive officer Aabed Al Zeera.

"With the recent strong trends in property valuations and rental growth in Abu Dhabi, and with these trends forecast to continue in both the office and residential markets, now is the right time to invest in a project such as Danet Abu Dhabi.

"Population growth, demand and government policy are creating an ideal environment for future growth.

"In addition, Danet Abu Dhabi will be one of region's best-planned communities and will meet the growing demand for sophisticated mixed-use projects. Its location close to downtown Abu Dhabi will also make it a very attractive investment."

The Al Rayhan Neighbourhood

A new BD14 million private housing project will be built soon in Shahrakan, near the Bahrain International Circuit (BIC).

The Al Rayhan Neighbourhood project is being spearheaded by Al Enma'a House for Real Estate and was approved by the Northern Municipal Council yesterday.

The new project will include 73 houses, eight four-storey apartment buildings, five three-storey apartment buildings and four commercial buildings.

It will also include a park for residents.

At yesterday's meeting, council chairman Yousif Al Boori warned fellow councillors against blackmailing investors into making charity contributions.

"The investor is already giving financial support to the Saddad Charity Fund and he is willing to do the same to the Shahrakan Charity Fund," said Mr Al Boori.

"There will be no conditions in the contract because we are not here to blackmail anyone.

"We want to encourage investors, not scare them, because most have started thinking that to have council approval for projects they need to pay us huge amounts of money."

Al Enma'a has just completed a similar project in nearby Saddad called Al Zahra Neighbourhood.

The Sunset Hills

A NEW $100 million (BD37.8m) project is to come up within the Al Areen Development Project, it was announced yesterday. The Sunset Hills project is to be carried out by the Abu Dhabi Investment House (ADIH) and the Kuwait-based Sorooh Investment Company. A $53m contract, to set up the infrastructure and undertake the main construction works at the landmark project, was also announced on the occasion.

The contract, awarded to Bahraini company Ahmed Mansour Al A'ali was signed by the ADIH chief executive Rashad Janahi and Ahmed Mansour chief executive Jalal Al A'ali.

Dheya Towfiqi Engineering Bureau is the project consultant, which will be managed by Bonyan International.

The mixed-use venture will be home to a self-sustained community featuring a mix of residential and commercial facilities such as luxury villas, town houses, terraced apartments, and apartment blocks for shops and residences.

"Scheduled for completion in 2009, Sunset Hills is strategically located in the Al Areen Development Project and offers breathtaking sunset views to its residents," Mr Janahi told a Press conference.

"It will cover approximately 200,000sqm at Al Areen's southern gateway, and its built-up area is over 44,000sqm."

He said once completed, it will be a distinguished location with unique components.

"It will include 300 residential units of villas, town houses, luxury apartments, multi-purpose buildings and a club house," said Mr Janahi.

He said the announcement was significant because it immediately follows the signing of an agreement to develop the Porta Reef project within the Reef Island.

Sorooh Investment Company chief executive Mohammed Bugais said as strategic partners, they will work together to achieve best returns for investors. Mr Al A'ali said Sunset Hills is the second project they are implementing at the ADIH, after The Lagoon.

"We are proud of this trust which demonstrates a real partnership for developing distinguished real estate projects in Bahrain," he said.

Mr Al A'ali said the company complies with the best quality standards and international specifications in all its work.

The ADIH is promoted by leading financial institutions, a group of prominent businessmen and investors from the Gulf region, mainly Abu Dhabi.

It focuses on the existing and emerging potential in private equity, corporate finance, real estate, asset management, investment placement, and has interests in managing initial public offerings (IPO's) and buying and selling domestic and international securities.

Al Areen Development is spread over an area of two million sqm near Al Areen Wildlife Park.

Major components of the development include the recently opened Banyan Tree Desert Spa and Resort - Al Areen, the Lost Paradise of Dilmun Water Park that will be inaugurated in the coming summer, Hotel Al Areen, Al Waha Resort, Downtown Al Areen, Sarab Al Areen, Oryx Hills, and Sunset Hills among other residential villages and entertainment and recreational facilities.