Home-buyers in the Golden Gate project can get a full refund or continue with the new developer appointed to complete the project, the Real Estate Regulatory Authority (RERA) announced yesterday.
The regulator said that all buyers wishing to terminate their contract can claim full refund of payments made so far by submitting the required documents on its website (https://www.rera.gov.bh/en/category/rera-eservices) where it has created the Golden Gate buyer’s system (https://airtable.com/shroiNu10id5WR7h5).
The system will be active only for 21 days.
It was also announced that Al Hidd Real Estate of Grnata Group has submitted all the required financial guarantees to complete the Golden Gate project, as agreed with the previous developer, in compliance with all the requirements set by RERA in order to protect the rights of all parties.
RERA said the decision was part of a comprehensive and equitable solution reached under the direction of its board of directors
“Grnata Group is a real estate company with an outstanding experience in the market and capable of fulfilling its commitments by completing the project at this critical stage,” it said.
The regulator said it used the authority assigned to it by Law No. (27) of 2017 with respect to Promulgating the Real Estate Sector Regulation, and intervened in a timely manner to prevent the project from getting stalled, and maintain the proper functioning of the market as well as protect the rights and funds of buyers and investors.
RERA chief executive Shaikh Mohammed bin Khalifa Al Khalifa said: “The Golden Gate project was one of the projects licensed by RERA, which made finding the solution more efficient and efforts to follow up on the progress of the project throughout the previous period had a significant impact in reaching the appropriate solution that preserves and protects the interest of all parties including the developer, buyers and investors, which was our main priority in RERA.”
A fundamental role of the regulator is to ensure a safe real estate environment under the wise leadership of His Majesty King Hamad and the government led by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince Prime Minister, as the sector is a key pillar of Bahrain’s economy, he added.
Last week, RERA had assured investors in the Golden Gate project that their investment was safe in the project’s escrow account.
On December 27 last year, the regulator announced it was cancelling licences (LLC No. DVT-201903/0014 and D201810/0066) awarded to Golden Gate Developers, “in view of serious and repeated violations committed by the developer, and failure to fulfill legal obligations towards the regulator, the buyers and the project, and failure to implement the directives of RERA to address the violations despite ample time being provided for the same.”
The authority had said then it was forced to take the decision after exhausting all the legally prescribed measures and notifications, including the imposition of fines and the temporary suspension of the project licence for a period of three months.
RERA had granted Golden Gate two licences: a developer’s licence, which is required for auditing and qualifying developers, and an off-plan sale development licence.
In November 2018, the $130 million project in the heart of Bahrain Bay, was launched as a joint venture of Bahraini-based Kooheji Golden Gate and Indian real estate companies Ajmera Realty and Mayfair Housing.
The 140,000sqm development consists of two towers with 45 and 53 storeys and 746 apartments.
The project is billed as the tallest residential structure in the kingdom, with 999 car parking bays, spread over seven floors.
Construction work on the project started in 2019, while the developer had announced at the launch that the project would be completed in 36 months.