Flip through the latest issue of Gulf Weekly.
THE finishing touches to the latest ‘neighbourhood mall’ in Bahrain are taking place over the summer as home plots in an adjacent residential villa project are being swiftly reserved.
The Spanish-themed El Mercado Janabiya retail centre has already witnessed the first of its anchor tenants, McDonald’s, open for business.
“The mall is complete and operational and we expect that our other tenants will complete their fit-outs over the summer months,” said Amin Al Arrayed, First Bahrain’s chief executive officer.
“The centre will feature the largest Al Osra supermarket in the country. The supermarket, along with a series of other restaurants and shops, are planning their openings in August and September.
“Neighbourhood malls are the new trend as people look for convenience and ease of access. We believe that El Mercado will be a hit with residents of the adjacent communities.”
With malls of all shapes and sizes springing up in recent months across the island and with many more in the pipeline, the Bahraini businessman and former banker believes that El Mercado’s location and uniqueness, plus road improvement plans currently underway, will drive business towards the destination.
“The key considerations for our developments at Janabiya have been location and demographics,” explained Amin. “El Mercado is located in a dense residential area with close proximity to St Christopher’s School and the British School of Bahrain and provides easy access to the Saudi Causeway.
“We expect to serve the residents of Janabiya, Saar and Budaiya, as well as Hamala and Jasra. The key factor was the land’s location relative to the causeway as well as the numerous residential compounds and buildings.”
El Mercado means ‘The Market’ in Spanish and the name is in keeping with the architecture and open air concept adopted. The designers also wanted to stay true to the Janabiya area with its classic ‘old world’ look and gardens.
Extensive market research prior to the development’s start has also paid dividends with many of the outlets opening featuring on potential customer wish-lists.
A pharmacy, normally only found in large international malls and the UK high street will be there, alongside a 24-hour fitness gym, a men’s barber shop, ladies beauty salon, toy store and a bank branch.
As well as McDonald’s, coffee shops will open, plus Chinese, Latin-Mexican and Texas-style BBQ diners, also popular in the US and making their first appearance in the Bahrain marketplace, are to follow, alongside others.
“We did an extensive amount of research before embarking on the El Mercado project, particularly in securing land with the strategic characteristics to best support a mixed-use project such as El Mercado,” Amin explained. “We engaged with experts in developing the design and best use for our plots in addition to discussions with officials at both government and municipal levels.
“We also reached out to the residential communities through social media to better understand the types of services and shops that they would like to see.
“Our approach to development has always been proactive and considered. We always identify the domestic demand drivers that would make the project a success. El Mercado is located in an area that is currently underserved by the market and new infrastructure will be introduced to make our location a key junction for traffic coming to and from Saudi Arabia.
“The open air and garden features will make El Mercado a very pleasant place to spend time with family and friends away from the hustle and bustle of the mega malls in Seef and Manama, in my opinion,” said family man Amin, who is married to Rusul Al Hashemi. They live at Abu Saiba, just off the Budaiya Highway, with their children, Ahmed, 13, and Yasmeen, 11.
There are now only three 125sqm spaces available and at this stage the company is only looking at brands that will add ‘significant value’ to the mall and are said to be ‘particularly interested’ in services and entertainment concepts.
A formal ribbon-cutting ceremony is set to take place sometime in October, once the majority of tenants are open for business.
As for the adjacent 42 villa El Mercado Village residential project, a show villa will likely be ready by the end of the year. “We are on track to complete and handover the villas by the end of 2017,” revealed Amin, who believes the mall will provide ‘great synergy’ for the residents as they will benefit from the services, cafes and restaurants at the mall. “Likewise, the mall will benefit from having 42 families and potential customers next door,” he added.
Prices for the villas range from BD180,000 to BD270,000 and already the response to the project has been ‘very positive’.
The company announced El Mercado Village at this year’s Al Hilal-organised Gulf Property Show back in April.
Only reservations are being taken at this stage but sales mode will come into full operation after the summer break. Mortgage finance will also be available to those who require it.
“Beyond the obvious lifestyle elements with the mall next door, these homes are ideally suited to new local homeowners with growing families,” said Amin.
“The homes are also in an ideal location for those that will be commuting to Saudi Arabia, offering direct access to the causeway.”
The company has a track record on development success and this project, plus one in the pipeline, is almost a step back in time now the kingdom’s future looks rosier.
Amin explained: “First Bahrain was established as a real estate fund in 2004 in the midst of the real estate boom period. I had experience dealing with the real estate market through my mortgage financing position at BBK as regional head of retail banking as well as my position as head of placement at Reef Real Estate Finance Company.
“I was recruited by the shareholders of First Bahrain in 2007 to serve as its first executive manager, formally setting up the company and beginning the development of the fund’s holdings.
“Majaal was our first completed project in 2010, as the company pivoted towards industrial property from a planned development in Seef which was wisely cancelled in the wake of the financial crisis of 2008. Despite the financial crisis and the political crisis in 2011, it has been a resounding success.
“Majaal was the first, and is currently the largest, provider of SME industrial facilities in the kingdom.
“We are looking next towards our land in Seef and hope to have another announcement on a new project there early next year.”
