First Bahrain, an innovative regional real estate developer announced the expansion of its warehouse project at the Bahrain Investment Wharf (BIW) in response to the increasing market demand for logistics warehousing, and commercial space for small and medium enterprises (SMEs). Being a forward-looking investor, First Bahrain has secured additional land within the BIW, which is the company’s inaugural project, taking the total land mass of the project to 716,000 square feet.

Upon completion the warehouse will offer approximately 200 units for lease, ranging in size from 800 square feet upwards. The first batch of warehouses is due to be delivered in 9 months, with the entire project due for completion in 18 months.

Amin Al Arrayed, General Manager of First Bahrain, commented: “Especially in light of the current economic situation, First Bahrain is pleased to be focusing on projects which support the real economy.  This expansion is in response to sustained demand in the SME sector of the Bahrain market and the expansion of our project will substantially increase our logistics facilities, helping to address the Kingdom’s current shortage of warehousing.”

The warehousing development is a prime example of First Bahrain’s demand-driven investment approach, as well as its leadership in exploring untapped opportunities in Bahrain’s real estate market and its ability to differentiate its offerings. The development is progressing as planned, and it is raising the bar for industrial properties and warehousing compounds by developing modern warehousing space to cater for market requirements and increasing demand.

Mr. Arrayed added: “As First Bahrain prepares to break ground on its inaugural project, we affirm our commitment on delivering on promises and transforming concepts into a built reality. The increase in scale at the BIW will allow us to offer even more SMEs the chance to benefit from quality logistics facilities, which have been previously lacking in the Kingdom. Retailers and newcomers to the market – of which there are currently a high number - are dependent on warehousing and storage facilities, but there is also a wider need among other types of companies who requiring modern warehousing space.”

Designed by international engineering firm, Tebodin Consultants & Engineers the warehousing space will be divided into individual units with an option to combine units to accommodate larger tenants’ needs.

In addition to the physical warehousing space, the development will offer a range of value added services, including a 24/7 security service, state-of-the-art ICT provision, assistance on efficient design and use of space. The small to medium, modern and safe warehousing spaces can be used solely for storage, or as a combined storage facility / office, ideal for encouraging startups and smaller companies, and in allowing existing companies to expand.

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In making the announcement today, Amin A. Al Arrayed, General Manager of First Bahrain said that he was delighted that negotiations with KFH-Bahrain had come to a successful conclusion: "The financing comes in perfect timing as we have just received our building permits from the Muharraq Municipality and we expect to receive tenders from contractors within the week. We would like to thank KFH-Bahrain for all of their efforts and belief in First Bahrain and we look forward to working with them on future transactions.”

He continued: “We have taken an aggressive approach during the pre-financing period of the project to set the stage for a fast track construction schedule. We have been hard at work on the design and now the project financing is complete, we are ready to begin construction.”

The complex which will be built in two phases over an area of 43,000 square meters will offer approximately 150 units for lease which will range in space from 80 square meters upwards. Phase one is due for completion in mid 2009. Strategically located with easy access to airports, seaports and overland routes to Saudi Arabia it will meet the increasing demand from small and medium enterprises (SME’s) for comprehensive modern warehousing and logistics facilities for the operation and growth of their businesses. The facility is being designed by international engineering firm Tebodin Consultants & Engineers.

Given this financial achievement the board decided that it was appropriate to begin dividend payments to the company’s shareholders, recommending 10% dividend, half of which would be paid in cash and half in shares. The company now has a paid up capital of KD30 million. The return on equity (ROE) achieved was 12.5%.

Speaking on the announcement of the company’s excellent performance, Mr. Ahmed Al Bahar, Chairman of First Bahrain commented “First Bahrain has laid solid foundations in 2007, forged through strong collaborative and strategic relationships and a commitment to both international best practice and our core Sharia principles. Our 3-year plan is on target and we’re confident and excited about our future growth within the marketplace.”

Mr. Amin Al Arrayed, General Manager of First Bahrain, added, “First Bahrain’s solid track record of achievement and success is underpinned by the commitment and dedication of the internationally qualified management team. Each member is highly skilled in all aspects of real estate development, from long-term investment strategies to project construction, ensuring professional involvement at every stage of project development.”

“The opening of two new offices in Bahrain and Kuwait has been a significant milestone in the growth of First Bahrain. “They have enabled us to develop a solid investor base in both countries whilst an increasingly liberal economic environment is driving increased foreign direct investment in both countries” commented Amin Al Arrayed.

The success of 2007 has paved the way for many ambitious projects. First Bahrain’s flagship USD 450 million Seef Project in the Kingdom of Bahrain will comprise office buildings, residences and a Sharia compliant five star hotel. In addition, approval was obtained for a subdivision of the Seef plot which was subsequently sold netting a significant return. First Bahrain also successfully acquired land for the Bahrain Investment Wharf, a USD 25 million project comprising warehousing and logistics facility situated on 43,000 square meters near the new Shaikh Khalifa Port at Al Hidd, Bahrain.

A key priority for 2008 is the expansion of the company’s operations across the region, as set out in our corporate plan. First Bahrain’s focus on developing both its commercial portfolio and its human capital over the past twelve months has afforded the company a robust platform to achieve the broader goal of a listing on the Kuwait Stock Exchange (KSE).

Amin Al Arrayed would like “to thank all our staff, at all levels, in both Bahrain and Kuwait for the commitment, drive and dynamism they have shown during the past year. To the Board, I offer a very sincere thank you. My thanks also go to our strong base of Middle East investors for their unwielding support over the last few years.”

Mace will be responsible for managing construction planning, project schedules, operational and construction issues and procurement strategy.

The announcement coincides with the recent appointment of an international architectural firm to master-plan the 22,000 square meter development which will feature a hospitality complex including a Sharia-compliant five star hotel and serviced apartments along with office and residential towers.

Welcoming the agreement with Mace, Amin A. Al Arrayed, General Manager of First Bahrain said: "A development as large as our Seef project needs to be carefully managed. Working with the best people is paramount to success and we believe that Mace is the right partner with a level of understanding and experience to bring the development to fruition. We now have a team in place that can deliver a world class facility. Our next step will be to work alongside them on the appointment of the lead contractors and subcontractors."

The award-winning Mace Group has been responsible for some of the world’s most iconic buildings in recent times including Venetian Macau, the London Eye, the British Museum and Singapore Sands. Mace also recently earned the prestigious accolades of having six of its projects achieve International Safety Awards in 2007 and of being chosen as the 2008 UK Project / Construction Managers of the Year.

Commenting on the project, Andrew Johnson, Director of Mace in Bahrain said: "Mace is delighted to work alongside First Bahrain in the realization of its vision. The Seef development is one of the most pioneering and innovative developments in the Kingdom and we look forward to successfully working with First Bahrain over the next three years to ensure the on-time completion of the project."

First Bahrain, whose principal shareholders are leading and regional institutions including Global Investment House, will be the developer for the prestigious project. First Bahrain will be seeking partners and institutional investors to co-develop the project.

The Enterprise Resource Planning (ERP) solution, Microsoft Dynamics GP 10.0, is a suite of integrated business management solutions that works with existing Microsoft products, such as Office and Windows, to integrate an organization’s data and processes into a unified system. A key component is a unified database that stores data for the various system modules.

Mr. Waleed Kanoo, General Manager commented: “The new ERP system will not only coordinate operations across departments, but also benefit strategic planning and management at First Bahrain. By offering better data access, ERP will allow managers to have up-to-the-minute information to use in decision making and managerial control. The system will also support our resource planning by providing a better and more up to date assessment of needs and resources.”

Mr. Daniel Taylor, Head of Operations, First Bahrain, commented: “With offices located across two countries, an integrated financial management system like Microsoft Dynamics GP is critical for us at First Bahrain to ensure controls and to speed access to information for decision making. Our new ERP system will help us streamline procedures and increase business efficiency, which will increase our operating profits and make sure we remain good stewards of our shareholders resources.”

Kanoo IT was selected to implement the project after a comprehensive evaluation which was based on their previous experience in successfully implementing similar projects, coupled with their wealth of professional expertise. Kanoo IT has a full team of Microsoft certified professionals with considerable experience, especially in the investment sector.

The openings coincide with First Bahrain’s recent project announcements in Bahrain: a $450 million mixed-use development adjacent to the City Centre Mall in the Seef District and a $25 million warehousing development at the Bahrain Investment Wharf.

Speaking on the importance of the strategic location of First Bahrain’s office openings, General Manager, Amin Al Arrayed, who leads the combined office teams commented: “Our offices will enable us to develop a solid investor base in both countries while the liberal economic environment will facilitate more and more foreign investment in both countries. The building of our portfolio and human capital is also a critical step towards our future listing on the Kuwait Stock Exchange.”

The simultaneous openings of the new offices will facilitate seamless integration between First Bahrain’s three core operating teams, investments, projects development and operations; each of which has elements in both offices. In addition to the office openings, First Bahrain is actively recruiting, and plans to grow its team in line with increasing commitments for future projects and opportunities.

The Bahrain office is located in the heart of Bahrain’s new business district at Seef in Suite 501 of the Almoayyed Tower. The new phone is +973 17567555 and the new fax is +973 17567556.

The new Kuwait office is located in Al Qibla district across the street from the Sheraton Hotel on the 15th floor of the Al-Khaleej Tower on Abu Baker Al Sadeeq Street. The new phone is +965 2243838 and the new fax is +965 2243839.

The agreement to lease the land for the facility in BIW was signed between First Bahrain’s General Manager, Amin A. Al Arrayed, and the Bahrain Investment Wharf Chairman, Mr. Ahmed Al Qattan. The signing ceremony was also attended by BIW CEO Muhannad Al-Durrah and First Bahrain’s Head of Investments, Mounther H. Al Sabbagh.

The development will meet the increasing demand from small and medium enterprises (SME’s) for comprehensive modern warehousing and logistics facilities for the operation and growth of their businesses.

“First Bahrain believes in developing projects which both serve the growing needs of local SME’s and will stimulate growth in the sector,” stated Mr. Al Sabbagh. “First Bahrain’s facility at BIW will cater to a niche market which has increased substantially due to recent economic growth in the Kingdom. The project will offer flexible unit floor plans in a fully secured environment. Strategically located with easy access to airports, seaports and overland routes to Saudi Arabia, First Bahrain’s facility is expected to deliver direct cost savings to SME’s engaging in import and export activities.”

Mr. Al-Durrah added, "Our partnership with leading companies such as First Bahrain continues to build the importance of the BIW development in the economic scene in Bahrain, as an increasing amount of both regional and international companies invest in the project."

The facility is being designed by international engineering firm Tebodin Consultants & Engineers. The complex, to be built in two phases over an area of 43,000 square meters, will offer approximately 150 units for lease which will range in space from 80 square meters upwards. Phase one is due for completion in Fall 2008. The design of the facility will ensure the use of advanced technologies for security monitoring, access, and fire control systems. These advanced systems are especially valuable in light of recent safety mishaps in Bahrain where warehouse fires and other unfortunate incidents have resulted in millions of dollars of losses, in terms of both product and property.