Bahrain firm in pact with Wadhwa to develop MEDZ project

Gulf Finance House BSC (GFH), a Bahrain-based Islamic investment bank, has signed a partnership agreement with Wadhwa Group, an eminent real
estate developer in India.

The agreement will see GFH and Wadhwa develop core infrastructure under the bank's Energy City Navi Mumbai (ECNM) and Mumbai IT & Telecom City (MITTIC) projects (together termed as the Mumbai Economic Development Zone) and also secure a successful exit for investors.

Following the infrastructure development, GFH and Wadhwa will together develop integrated homes, affordable housing, hotels and malls on the two sites, which hold a strategic location on the outskirts of Mumbai, a statement released here said.

This follows GFH's recent announcement of returning back to profitability in Q1 of 2011 with a net profit of USD 11.9 million. The partnership creates a consortium which will benefit from the local expertise of the Wadhwa Group, an organisation with over 40 years of proven development experience in Mumbai.

Announcing the agreement, GFH Executive Chairman Esam Yousif Janahi said: "Our first priority is completion of our existing projects and exiting our investors. During this year, we are planning and targeting a number of exits and some key
developments. 

"Our initial plan to sub-divide the Mumbai land and sell to sub-developers at an early stage was difficult to achieve due to market changes post financial crises -- we recognised this and revised our strategy in partnership with Wadhwa to develop the project in phases and complete units for direct sale.     

"GFH has a proven track record of conceptualising projects which augment emerging economies. The partnership with Wadhwa Group shows the results of our revised strategy, as well as the faith international economies have in our ability to follow through on projects." Launched by GFH in 2007 and 2008, respectively, the ECNM and MITTIC projects cover 1,250 acres of prime development land at Navi Mumbai in Maharashtra. The two developments form core components of the wider Mumbai Economic Development Zone -- a state-of-the-art mixed use development strategically located close to Mumbai International Airport.

The zone, which is supported by the government of Maharashtra, will ultimately offer world-class infrastructure for local and international companies across the services, information technology and energy sectors.

Wadhwa Group Managing Director Sanjay Chhabria said they were impressed with GFH's ability to conceptualise such developments.

"With our expertise and reputation, together we will form a unique partnership that will create a substantial value to stakeholders. Our unparalleled expertise and reputation in the Mumbai development sector was amassed over 40 years of consistent project design, management and delivery. We and all of our partners are committed to adding to this track record with the successful, timely and profitable completion of these
landmark Mumbai developments," Chhabria said.