Q: What is the projects total value?

A: The total value of the project is $2.5 billion.

Q: What type of development is Bahrain Bay?

A: Bahrain bay is a mixed-use, urban, waterfront development which incorporates residential, commercial, hotel, tourism, corporate headquarters, as well as community facilities and public amenities within its uses.

Q: Who are the main investors behind the project?

A: Arcapita Bank, a leading Bahrain based investment bank is the main investor in the project alongside a Bahrain investment consortium.  

Q: When are the remaining land parcels expected to be sold by?

A: We estimate that the remaining 35% of the land will be sold over the next two years.

Q: How much of the land has been sold?

A: Bahrain Bay began its sales process in early 2006 and since then has been successful in selling about 65% of the land. 

Q: What is the estimated completion date for the entire project?

A: Bahrain Bay is to be executed in three phases.  Phase One will involve the reclamation and infrastructure development of 430,000m² of land, work which commenced in July 2006 and is now complete.  Phase Two involves the construction of the anchor developments: the Four Seasons Hotel, the new global headquarters building for Arcapita and Capitaland’s Raffles City Bahrain.  Construction of the Arcapita HQ commenced in March 2007 and is due for completion in early 2010.  Phase Three will involve other development partners for the development of residential, retail and commercial sub-projects around the anchor developments. We estimate that the entire project will be completed in 5-7 years.

Q: What is the status of the Four Seasons Hotel?

A: The Four Seasons Hotel has undergone a design review process which is a commercial decision responding to current market demands. The hotel will remain a Four Seasons brand and will be managed by the Four Seasons Group.

Construction work on the hotel is expected to commence in the first quarter of 2010 after completing their schematic design process by the end of 2009.
The hotel will take approximately two to two and a half years to build and will be ready by the end of 2012 or mid 2013.

Q: Where are most of your Third Party Developers from?

A: The large majority of our TPD’s (about 60%) are local and sub-regional investors and the remaining 40% are split between the US, Europe, Asia, and the Indian markets.

Q: What makes Bahrain Bay different to other projects in Bahrain / the region? Why should I invest in Bahrain and not Dubai for example?

A: In terms of how Bahrain Bay differs - Bahrain Bay has been designed to be specific, in terms of its economic footprint, its commercial scale, its urban design as well as its physical shape. All of those criteria have been driven by economic sustainability or relationships within the project that make the project sustainable. It’s a diversified project which incorporates residential, commercial, hotel, tourism, corporate headquarters, as well as community facilities and public amenities within its uses.  All of those things make Bahrain Bay the best practice of urban design and economic opportunity associated with that form of development.  Many other developments are constrained.  They are constrained by either land, neighbourhoods, government infrastructure, or land ownership problems. Land speculation is not allowed in Bahrain Bay. Developers have to purchase land with the intent to develop. There are also constraints on urban design; the design intent is attached to the purchasing contract.  It ensures each neighbour has a clear understanding of knowing what's going on next door. Selling off the plan is also forbidden - a lot of other developments are driven by off-plan sales where developers might finance a component of their equity by the placement of pre-sales.

Q: What are the stages and completion dates of Third Party Developer projects?

A: In addition to the Arcapita HQ and Raffles City Bahrain projects which are already underway, we anticipate that three to four other developers including “Corporation Investment House”, “Salhia”, “Al Baraka Bank” and “Guidance Financial Group” will commence construction on their projects before the end of the year. Five other developers have approved schematic designs and nine have approved concept designs. We expect at-least 30% of third party projects to be completed by the end of 2011 and the majority of projects to be completed by the end of 2014 or 2015.