GHC Talk NL - Gulf Holding Company

CEOTalk
Gulf Holding Company Newsletter
I am honored to accept the challenge of being tasked to turn around the
fortunes of GHC a high profile victim of Bahrain’s 2008 real estate downturn.
As of today we have acted swiftly to restructure the business and remarkably
announced the reactivation of one of our main projects “Villamar”.
The company has good assets and all stakeholders realized that GHC offers
good potential and that we needed to do whatever it would take to give it
another lifeline, to meet our financial and ethical commitments to the market
and rebuild our image. One of our main priorities was to assemble a new and
experienced management team capable of turning around the company.
Key appointments have already been made in investments, engineering,
marketing, business development and administration functions.
The main goal is to create a “shock resistant” business model so we are
well equipped to handle the next economic cycle. Establishing new
revenue streams and targeting service oriented income and not just direct
investments are keys to success.
Majed Al Khan
Chief Executive Officer
With the restructuring and project reactivation underway, GHC could well be
one of the region’s great turnaround stories of the year. Restoring confidence
among stakeholders sends a stronger message and people have started to
believe in us again and are confident that GHC will deliver on its commitments.
Real estateTalk
Bahrain Real Estate General Market Update
The drop in oil prices and the gradual elimination of crucial subsidies in Bahrain and the GCC market
continues to affect sentiment regionally; however, this should be a temporary effect as Bahrain continues
to be a relative stable and low cost base option for both residents and businesses compared to the
GCC region.
The general demand for real estate in Bahrain is soft but stable and price the key driver in a very selfconscious market. The removal of subsidies such as electricity and water will most likely shrink the bottom
line for both landlords and leaseholders as the former will likely cap any inclusive lease agreements and the
latter will seek to negotiate better deals.
As household and business budgets come under more inflationary pressure there are increasingly
signs of tenants seeking better value for money. It is also notable that some landlords continue to have
a high occupancy rate and able to charge a slight premium if the provider offers high quality property
management, services and maintenance packages.
The overall demand picture from a long term perspective continues to be positive in Bahrain, the limited
amount of land available, growing young population and finally the growing numbers of tourists are all long
term positive factors. Furthermore, Bahrain’s government effort to attract GCC and international tourists is
gradually showing positive signs; especially with the new ‘visit visa’ law amendments to enter the Kingdom
of Bahrain and the number of beach front hotels and recreational projects under development.
Bahrain Real Estate Residential Apartment Market Update
The demand for residential apartments in key areas such as Seef, Juffair, Reef, Bahrain Bay and Amwaj
continues to be solid, where average selling prices per sq.m ranges from BHD 650 to BHD 1,300
depending on area and unit size. The demand for smaller units continues to be high and developers are
able to charge a larger premium on top of the added costs involved with smaller units. Market research
continues to indicate that end users key decision maker to purchase, is the unit total selling price and not
the price per sq.m. However, the entrance of many developers targeting the same segment of the market
will undoubtedly increases supply which will eventually put pressure on prices.
The overall rental demand in the main market and submarket continues to be flat in terms of rental prices.
However, areas such as Amwaj, Juffair, Saar and Seef continue to be favorable for expatriates given the
high end life style, amenities and schools available close by. The average rental rate continues to vary from
BHD 625 to BHD 1,000 per month for 2 and 3 bedrooms depending on the area and building quality. It is
also important to note that tenants are always seeking better values so it is important for landlords to offer
exceptional services to retain and increase occupancy. As the supply of new units comes available and the
tightening of household’s budget coming under inflationary pressure, flexibility catering to market demand
and pressure is important to win market share in a stagnated market.
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CorporateTalk
Gulf Holding Company continues to build up its senior management team as the Villamar
development continues to gain traction. As of today GHC employs a new and experienced
operational team collectively bringing more than 70 years of real estate experience; a team that
is working tirelessly to turn around the company to honor all of its obligations and commitments
to sustainably protect and grow shareholders value over the coming years.
Gulf Holding Company would like to welcome its new team members that includes;
Mr. Majed Al Khan as Chief Executive Officer, Mr. Al Khan is a well-reputed
businessman with extensive experience across various sectors including
banking, investments, industry, trading and contracting across the GCC. He holds
a Bachelor’s degree in International Accounting and Finance from the University
of Northumbria at Newcastle, England. His experience comes from a career
background which includes senior positions in HSBC Middle East, Capivest
(Khaleej Finance & Investment) and finally as Deputy CEO of Inovest (formerly
known as Tameer). Mr. Al Khan specializes in financial engineering and value
enhancement of real estate and private equity products.
Mr. Laith Yousif Al Memar as Chief Development Officer, Mr. Al Memar has
over 30 years of commercial and residential real estate experience, which
includes structuring investments, fund management, logistics, property
management and executing new developments. Prior to joining Mr. Al Memar
was the CEO of Al Khaleej Development Co (Tameer) until 2015. He was also a
board member and managing director of several companies, including Bahrain
Investment Wharf, Tamcon Contracting, Tala Island Development and Durrat
Marina. Mr. Al Memar holds a BSc degree in Architecture from the University of
Technology in Baghdad. Mr. Ahmed Jamsheer as Senior Manager of Investment, Mr. Jamsheer
past experience was the head of the overall investment portfolio at Fortuna
Company and Finance Director at Promoseven Holdings. Mr. Jamsheer has
great exposure and experience in real estate (development, management &
acquisitions), equities, fixed income, private equity and alternative investments.
Mr. Jamsheer has a strong educational background graduating with high
distinction from Bentley University located in Waltham, Massachusetts for both
his Undergraduate and Graduate degrees.
Mr. Mahmood Al - Kamel has also been recently appointment as Acting Head
of Business Development. Mr Al - Kamel has more than 12 years of experience in
Business Development & Investor Relations. He joined Gulf Holding as an Assistant
Vice President back in 2007 and continued serving till now. During his stay with
GHC he played an important role to identify potential markets and developed
strategic relationship with clients. Mr Al-Kamel has previously worked for Gulf Air,
Ministry of Commerce and United Gulf Bank. He holds BSc in accounting from the
University of Bahrain.
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VillamarTalk
Villamar Update
GHC is glad to announce that the “Villamar” development is back on track and the contractor has
re-mobilized to the site after concluding strategic rescheduling terms with the project main financers
(Al-Rajhi Bank), the contractor (Al-Hamad), and strategic guarantor (GFH Financial Group).
The construction permit has been renewed, the consultant’s panel has been engaged and; to date,
almost 45% of the project has already been completed and remaining shall be completed within 48
months through 2 phases. The first phase is expected to take 24 months and will include completing
entire structural works, entire external finishes, and internal finishes of both tower B and common
areas. This will enable us to hand over tower B to the existing buyers and regain market confidence in
the project and GHC as a major developer in the Bahraini market. The second phase which is expected
to take 24 months will include finishing the remaining works required for handing over the remaining
unsold units. GHC has the option to initiate both phases on a collective and parallel basis.
As of end of April 2016, the contractor has initiated the following main tasks;
·
Remobilization to the site.
·
Installation of the aluminum panels including the commencement of the curtain wall works.
·
New shuttering is being prepared to receive steel reinforcement for the slab.
·
Steel reinforcement bars are supplied cut, bend and fixed at ground floor level.
·
Steel lapping reinforcements are cleaned and treated.
·
Samples are being tested for expansion joint repairs.
·
Testing all existing cables.
·
Checked, maintained and tested all tower cranes, hoists, cradles, concrete placing boom and
slip-form system.
·
Currently more than 350 appointed manpower’s and in the process of recruiting more than 350
workers and 50 staff members.
The sales process to market the remaining units is expected to start in the near future and the retail
area is expected to generate significant demand especially since the majority of the units are water
front in a prime city center location linked to the ‘Avenues Mall’.
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VillamarTalk
NewsTalk
1 August 2015
GHC announced the signing of restructuring
agreements with support from Al Rajhi Bank
(original majority financiers of the project),GFH
(the project’s new financiers) and Al Hamad
Construction (the project’s contractor).
15 February 2016
GHC received the UAE delegation led by H.E.
Yafea Eid Al Faraj, Executive Director of the Ajman
Real-Estate Regulatory Agency (ARRA). During this
visit, the UAE delegation had a first-hand account
of Villamar’s progress, and also examined various
best practices relating to project management,
construction, design, execution and other critical
aspect.
8 December 2015
GHC has announced the appointment of COWI,
an international Danish engineering consultancy
firm, to provide consultancy services for the
construction work related to the US$700 million
Villamar@ the Harbor project in Bahrain.
21 March 2016
To carry out the construction works in accordance
with the best possible practice GHC announced
the appointment of Projacs International as the
project management consultant, and Haj Gulf as
the cost management consultant.
9 May 2016
Gulf Holding Company (GHC), the developer
of Villamar project, received a high-level
delegation from the Ministry of Works,
Municipalities Affairs and Urban Planning.
The delegation was headed by Minister Eng.
Essam bin Abdullah Khalaf accompanied by
Undersecretary of Municipalities Affairs Dr.
Nabil Mohammed Abul Fateh and head of the
Municipal Center Eng. Salem Al Qouti.
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Gulf Holding Company
Bahrain Financial Harbour,
East Tower 30th floor,
P.O. Box 23239, Manama, Kingdom of Bahrain
(T) +973 17102102, (F) +973 17102100
www.gfholding.com
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