MANAMA, 15 October — Shamil Bank of Bahrain announced yesterday that it is incorporating a new company in the name of Al Marsa Real Estate Company B.S.C. along with the prominent Kanoo family through two separate companies, namely Y.B.A. Kanoo Holdings and Al Saraya Properties. The formation of Al Marsa follows the joint venture agreement that was entered into between the same parties earlier in June. Al Marsa is a Bahraini company approved by the Bahrain Monetary Agency (BMA) and incorporated on Oct. 9 as a Bahraini Shareholding Company. The objective of creating the company is to implement the Al Marsa Floating City Project. The project’s estimated cost is approximately 8 million Bahraini dinars and will be financed with 100 percent equity, where 50 percent is contributed by Shamil Bank, 25 percent by YBA Kanoo, and 25 percent by Al Saraya Properties. Al Saraya Properties will act as developers and marketer of the project whereas Shamil Bank will take up the role of being the financial manager and adviser.
Shamil Bank will soon make a portion of its investment in Al Marsa available to other investors through a restricted fund to be created for this purpose. The fund will be issued by Shamil Funds Company B.S.C. with the proposed name of “Al Marsa Real Estate Fund”. The fund will be recommended to high net worth individuals and select institutional investors in Bahrain and countries of the Gulf Cooperation Council (GCC). The fund will be closed-end with an expected term of 5 years and will track the performance of Al Marsa and its project. During this time, the fund is expected to make semi-annual distributions to investors. Shamil Bank estimates the net return to investors at 15 percent per annum over the life of the fund.
Al Marsa will be developed on a net constructible area of approximately 53,000 square meters on the Southern tip of the real estate development commercially known as Amwaj Islands. To date, land reclamation from the sea has been completed and infrastructure laying is under way.
Amwaj is located northeast off the coast of Muharraq Island with a total area of approximately 2.8 million square meters. The project will include chalets that are built following the model of the world renowned Port Grimaud in the French Riviera, in order to create a water-based lifestyle community living within a network of 36 meter-wide canals and elongated, 60 meter-wide islands.
Al Marsa will encompass about 274 chalets built in a scenic setting of beautiful landscapes, as well as sea and water canal views. It is the first development of its kind in Bahrain that may be considered for either primary residences or weekend getaways in a resort-like setting including all the necessary amenities and ancillary facilities.