Shamil Bank, a leading Islamic commercial and investment bank and member of the Ithmaar banking group, and Bahrain-based Ebrahim Abdulaal Group of Companies (EAG) today announced a multi-million dollar, joint venture to pursue real estate opportunities in the Kingdom of Bahrain and elsewhere in the Gulf area. The announcement follows the signing of a Memorandum of Understanding (MoU) between the two parties.

Two projects will be initiated early next year, by the joint venture in the Kingdom of Bahrain, namely Marina Reef and City View worth a combined value in excess of US$ 100 million. City View, a 20-floor residential tower will be built next to Dana Mall as a high rise development encompassing one, two and three bedroom apartments with luxury fittings, complementing amenities, and adequate parking space. Concurrently, the joint venture will develop Marina Reef, a mid-rise, sea-themed development consisting of three six-storey buildings, offering one, two and three bedroom luxury apartments on Reef Island (previously known as LuLu Island).

Special purpose companies, to be owned 51 per cent by Shamil and 49 per cent by EAG, will be formed for each project.

“EAG is a well known and reputed real estate developer and contractor, which has successfully operated in the Kingdom of Bahrain and elsewhere for more than 25 years. We are pleased to be partnering with them and are confident that the projects we will be jointly undertaking are going to be great successes,” said Shamil Bank Chief Executive and Member of the Board, Mohamed Hussain.

“It is a great opportunity to be able to forge a partnership with a financial institution having Shamil Bank’s caliber. Its strong brand value will help build buyer and investor confidence in the project. These are the first of many future projects to be launched through our partnership, within Bahrain and elsewhere in the GCC,” remarked EAG Chairman Ebrahim Abdulaal Al-Fahad.

“So far at the BIPEX exhibition, the two projects have witnessed great success with reservations made for approximately 52% of the residential units on offer in both developments.” added Mr. Al-Fahad.

Shamil Bank’s Head of Investment Banking, Ahmad Tayara, added that Shamil Bank has worked hard at carving a niche for itself in developing joint ventures in the real estate sector in Bahrain and worldwide, from the US to China. Such partnerships are based on the meeting of the minds, the expertise brought to the table by each party, and a proven track record. We foresee interesting synergies to be brought along this joint venture. The projects are two more in a long list of important real estate ventures the Bank has been involved in.

Mr. Tayara added “Shamil Bank is working to leverage the experience it has gained from successful projects like Al-Marsa Floating City which is today complete and accommodating its residents on Amwaj Islands. We seriously wish to undertake further work in the Kingdom of Bahrain but on a selective basis and where developments in sub-sectors of real estate are still lagging behind.”