Bahrain-based Gulf Holding Company (GHC) has signed a final sukuk restructuring agreement with Rajhi Bank and GFH Financial Group to officially mark the re-launch of the Villamar project at the Bahrain Financial Harbour.

The agreement follows considerable progress on the project by GHC over the past year including key milestones related to important legal and technical assessments and studies in addition to the reactivation of the site, which has been handed over to the project contractor.

The signing ceremony was held under the patronage of Shaikh Hisham bin Abdulrahman Al Khalifa, governor of the Capital Governorate, in the presence of representatives from Rajhi Bank, GFH Financial Group, Al Hamad Contracting Company, Bahrain Property Development Association, and various other government and private sector representatives as well as members of the media.

Lauding the deal, Shaikh Hisham said the signing was significant, considering the project's importance to the kingdom's real estate sector and its direct impact on economic development, and attraction of capital.

Shaikh Hisham dubbed it as a new addition and an important milestone to Manama. Rajhi Bank is the financer for the project, while GFH Financial Group is the sponsor.

Also notable has been the start of construction works under the supervision of a consultants panel that has been established and which comprises of a number of reputable and distinguished international and local consultants, he added.

Commenting on the agreement, Hisham Alrayes, the chairman of GHC, said: "We are extremely pleased to have now put in place the financial foundations for the development of Villamar @ The Harbour. With the successful rescheduling of all debts and payments, an important pre-cursor to the advancement of work has now been achieved and the promise that we made to our investors for the revival of the project kept."

"With this milestone now behind us, we expect the smooth and steady development of the project on plan and budget and for the benefit of all stakeholders. As we take this important step forward, we would like to extend our appreciation for the support provided by Shaikh Khalid bin Abdulla Al Khalifa, Deputy Prime Minister and his ongoing efforts to support the project and Shaikh Hisham for supporting this event," he stated.

Majed Al Khan, the executive board member of GHC, said: "Today we announce the latest milestone in the progress that we continue to make in our landmark Villamar @ The Harbour project. To date, significant progress has been made onsite, supported by the efforts of more than 400 workers, a number that will grow significantly as we further advance."

He pointed out that the revival will enable the company to maximise the project’s value and potential and effectively reward its shareholders for their patience over the past several years and the challenges that have been faced.

The revival of Villamar @ The Harbour comes as part of GHC’s commitment to further supporting growth and expansion of Bahrain’s real estate sector and signifies a new era for GHC and the real estate market in the Kingdom overall.

"We are especially proud to announce this progress alongside the upcoming commencement of the kingdom’s National Day celebrations, which underscore the kingdom’s ongoing economic and social progress and leadership," he added.-TradeArabia News Service