Debt Mandate for a Real Estate Development Project in Bahrain​

Empact Consulting > Case Studies > Debt Mandate for a Real Estate Development Project in Bahrain​

Securing BHD 10 Mn of funding for promoters of a real estate project

Client / Industry Brief

  • This is a large-scale real estate development project promoted by a Bahraini partner and an Indian partner
  • The Indian promoter has developed over 5 million sqm of area in India and have been in the real estate industry for five decades
  • The Bahraini partner is a well known real estate developer in Bahrain that has successfully developed and delivered several projects

Project Objectives

  • The promoters have already purchased the land required in 2009.
  • The total project cost is approximately BHD 55 Mn out of which BHD 10 Mn worth of land has been paid for and the contractor has entered into a barter agreement to put up another BHD 10mn of his own equity
  • Empact are playing the role of financial consultants by helping the promoters secure a BHD 10mn working facility.
  • The remainder of the project will be funded by sales to customers

Project Methodology

Project Benefits

  • The project is expected to have a profit of BHDD 8 Mn with a margin of 15%
  • The bank is expected to generate interest earnings of BHD 1.8 Mn
  • Investors who buy the property are expected to realize a margin of between 20-40% once construction of the development is complete
  • A successful development project of this size will be a boost to the economy and attract further investment for the country

Case Studies

Private Sector

Manufacturing Sector

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