The design and construction of industrial and warehouse properties in Bahrain are continuing to display growing sophistication, according to a report from CBRE, a global real estate consultancy firm.

According to government statistics, Bahrain’s Ministry of Industry, Commerce & Tourism (MOICT) operates eight industrial zones across the Kingdom, totalling over 22 million sq m, the consultancy noted in its Industrial Real Estate Sector – MarketFlash.

Over the last decade, purpose built, as well as, speculative industrial parks and storage facilities, which provide security, services and infrastructure - more conducive to occupiers operations - have raised the bar for this asset class.

 Prior to this, options were limited, in terms of facilities provided and lacked appeal for international firms looking to invest in Bahrain. The traditional industrial locations, such as Sitra and Ma’ameer, now face strong competition from gated and serviced industrial parks, particularly for those in Hidd, which are strategically located near land and sea ports.

Demand for pre-built high specification units, is driving development in the sector, with investors and occupiers seeking space with provisions that add value to operations and reduces capital expenditure.

Several newer industrial parks continue to develop, in close proximity to the Khalifa bin Salman port at Hidd, which is a ten minute drive from Bahrain International Airport. Prominent projects include: Bahrain International Investment Park (BIIP) at a total development area of 2.5 million sq m, Bahrain Logistics Zone (BLZ) at one million sq m .and Bahrain Investment Wharf (BIW) at 1.7 million sq m– all of which can provide pre built industrial units and warehouse space, as well as land for development.

These parks are zoned to offer additional benefits. Bahrain International Investment Park, as an example provides: 0 per cent corporate tax for 10 years, and no recruitment restrictions (nationalization) for the first 5 years, as well as, duty free access to the markets of the GCC and 100 per cent foreign ownership which are available across Bahrain.

Industrial land can be leased from the MOICT, with rates for industrial activities priced at BD1 ($2.63) per sq m per year (service and logistics activities land is at BD4 per sq m per year and commercial activities at BD9 per sq m per year). Many firms who require immediate solutions, will lease pre built space, at least initially.

Baytik Industrial Oasis or BIO, a Kuwait Finance House project, offers units for light industrial activity, starting at 2114.4 sq m and at a quoted rental rate of BD2.5 per sq m per month, including park service charge. BIO is currently circa. 90 per cent occupancy and the facility accommodates: Bahrain Fibre Glass (BFG) and international firms, including Tactile Roofing, which is a Far Eastern and African joint venture. At BLZ, the Bander Al Khaleej development offers storage sizes between 500 and 5000 sq m with rental rates quoted between BD3 – 4 per sq m per month.

At BIW, First Bahrain has completed the Majal development with the construction of its third phase. The full project consists of three warehouse blocks, across over 65,500 sq m, with versatile accommodation ranging in size, from 250 – 3,960 sq m to suit varying business needs and types of operation.

Investment Gateway-Bahrain by Manara Developments; a master planned project located in Hidd will offer light industrial, commercial showrooms and low rise office buildings with ground floor retail with opportunity for non-Bahraini entities to purchase , encouraging FDI to the Kingdom. The project is set for completion of infrastructure works in 2016.

Mazaya Holdings - Mazaya Logistics Project at Bahrain Investment Wharf in Hidd was recently completed, with a plot area of 27,605 sq m; a multipurpose facility with flexible offerings to suit various business requirements from 250 sq m to 15,250 sq m modular units. – TradeArabia News Service