Bahrain firm in pact with Wadhwa to develop Mumbai 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 $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."