I L.P. INVESTORS REPORT

Transcription

1 Dilmunia Development Fund I L.P. INVESTORS REPORT July 1st, 2016 to December 31st, 2016 Enchancing Life, Restoring Balance

2 Contents: Dilmunia Key Developments Master Plan Design Process Infrastructure Works Sales and Marketing Upcoming Activities Appendix Dear Investors, Welcome to the 23rd edition of the Dilmunia Development Fund I L.P. Investors Report, covering the period from July 2016 to December On behalf of Ithmaar-Dilmunia General Partner Company Limited ( GP / the Company ), we are happy to report continued steady progress in Dilmunia infrastructure work and its sub-developers projects. Our latest retail residential mast plan release was Jenina, a development in the southeast side of Dilmunia consisting of 39 residential plots, which was announced to the public towards the end of the previous reporting period, in June Sales expectations have been met and all villa plots are now sold. We are pleased as well to announce progress in Dilmunia s Phase 2 infrastructure works, which cover the eastern part of the master development, and our preparation for Phase 3, the last infrastructure phase. In parallel, construction continued on schedule on a number of other developments in Dilmunia, including SeaVilla, Temara, The Treasure, and Essence at Dilmunia. Other projects, including the Dilmunia shopping mall, Canal View, Residence Sharq, and Hanging Gardens have completed designs and are ready to start construction during 2017, while the South West Residential Development is in the design development stage. Coordination with public authorities continued during the reporting period on different aspects concerning the Dilmunia development. The electrical network pertaining to Phase 1 is now fully energised. Phase 1 streets are now lightening at night and the first individual electrical meters for residential units were also installed during the reporting period. In addition, the fixed telecommunication network was completed and all plots in Phase 1 are now serviced with fiber optic cables. Finally, soft landscaping and palm tree planting on the main roads in Dilmunia began in November We remain on schedule towards meeting all targets related to Dilmunia s individual projects, infrastructure and the master plan. We look forward to updating you on further developments as the project continues to progress. Best regards, Fund Manager, Ithmaar Bank B.S.C. ( Ithmaar ) 2 Fund Report

3 Dilmunia Key Developments Dar Al-Handasah Consultants (Shahir and Partners) is preparing the design for Dilmunia Gateway Bridge. Development Control Guidelines ( DCG ) for sub-developers of plots in Phase 1 and Phase 2 have been issued. The Primary Electrical Substation for Phase 1 was energised in August The electricity transmission connection to Dilmunia has been completed. Jenina, a development in the southern east part of Dilmunia consisting of a total of 39 residential plots, was announced to the public in June The response has been remarkable, with all villa plots now sold. Construction of Phase 2 infrastructure works, including, the arterial bridge, the second bridge in Dilmunia, are progressing well. Plot and street numbering details were received from authorities and first address plates were fixed during the reporting period. Cadastral survey drawings for Phase 1 are completed and transmitted to the concerned authorities. Phase 1 fiber optic network installations are completed, and a completion certificate signed in December Master Plan Further to the completion of Cadastral Survey drawings covering the western part of Dilmunia and its submission to the Survey and Land Registration Bureau, Phase 2 cadastral survey drawings are being prepared for the eastern side of Dilmunia, and are expected to be completed towards the end of Phase 2. Building permit procedures with the Muharraq Municipality have been established and building permits issued to all projects under construction on site. Plot and street numbering as per authorities requirements were received in June 2016, following a request sent to the Central Informatics Organization ( CIO ), and the first plate numbers were fixed in Dilmunia during the reporting period. Dilmunia s block number is 269. Design Process A Request for Proposal ( RFP ) for detailed design and supervision services for the Canal was launched in Q3 2016, with seven companies expressing interest. The first assessment report has been completed and clarification meetings will be held with the preferred bidders. Design of the Canal District Development ( CDD ) is progressing towards final submission. Ansari Engineering Services has been appointed to perform the design consultancy services required for civil works relating to the second 66kv primary substation. SNC Lavalin has been appointed to perform design consultancy services for the second 66kv primary substation plant. Phase 3 infrastructure drawings are being updated and the third bridge in Dilmunia, located over the marina, is being designed. Soft and hard landscaping for the canal and marina areas, roads, and other open spaces in Dilmunia are ready for implementation. Design work on the Dilmunia Gateway Bridge ( DGB ) 3 Fund Report

4 progressed during the reporting period, with the preliminary design being completed in October Water transmission designs have been issued and approved, and are awaiting final Wayleave approval from the authorities for the beginning of construction. Infrastructure Works walkway block paving on roads in Phase 1 progressing. The reporting period witnessed the first soft landscaping plantation on site. Site investigations for Dilmunia Gateway Bridge, needed for the detailed design, were completed in November Cebarco s scope of work in relation to Phase 2 infrastructure are progressing well with the completion date set for end of As Phase 2 Infrastructure works started in March 2016, works on the arterial bridge, the second bridge in Dilmunia, which is located over the canal, are progressing. Further to the Planning Permission drawings for the water transmission pipeline being circulated, Wayleave documents were issued to the concerned public authorities. Wayleave was granted by all authorities except the Roads Planning and Design Directorate ( RPDD ), whose final approval is subject to the resolution of a Letter of Undertaking between the RPDD and the Electricity and Water Authority ( EWA ) regarding any future pipeline diversions resulting from the RPDD s future plans to expand the Dry Dock Highway. With regards to Phase 1 infrastructure, Cebarco continued attending to various identified defects as per defect liability period requirements. Construction works on the foul water network is progressing, as is work on the water distribution and storm water networks. Secondary 11 KV electrical substation civil works also started. Keller, the sub-contractor for piling works, completed foundation and piles construction work relating to the Arterial Bridge during the reporting period. Arterial bridge sub-structure works, including pile and pile cap construction, have been completed and work on the superstructure is set to start soon. The temporary access road, which was completed in May 2016, now allows permanent access to the first residences. Hard landscaping works resumed in H2 2016, with Black paving bricks and installation of light poles on Wellness Road Casting of Pile Cap Foul water pipe laying at the Arterial Road Installation of rings for pumping stations Palms - Access to Temara A view of the south-west part of Dilmunia 4 Fund Report

5 Sales and marketing Current Projects Status Several third party projects are reaching visible construction milestones. Our team is keeping close coordination with sub-developers, giving them guidance and assistance. Jenina Jenina, a development located in the southern part of Dilmunia and consisting of a total of 39 residential plots (four assigned for residential buildings and 35 for residential villas), was announced to the public in June It covers a total area of approximately 36,850 square metres with a net sellable land area of approximately 26,600 sqm. Road leading to Temara Res 49 As the final designs have been approved, construction on a plot located in the centre-north of Dilmunia, with a total area of approximately 3,152 sqm, will start after the issuance of the building permit. SeaVilla Development Project The handover of the units started in H and is still ongoing. Start of construction on the third villa in Temara Private Villa A plot located in the south of Dilmunia with an area of approximately 5,606 sqm has been purchased for the construction of a private villa, with enabling and land preparation works having started in Q Superstructure works were completed during the reporting period. Construction of the luxurious Seavilla sub-development is completed Temara Temara plot purchasers continued to submit individual villa designs for approval during this period as construction continued on the first two plots, with one additional villa starting construction during the reporting period. Designs for five other villas have been approved and construction will start after receipt of building permits. Construction of Private Villa 5 Fund Report

6 The Treasure The Treasure, a project of Bahraini developer, Bin Faqeeh Real Estate Investment Company S.P.C. which is being developed on an approximately 8,100 sqm piece of land, will be a high quality residential 12 storey apartment complex comprised of around 230 living spaces. Works are progressing on site and construction of the superstructure and external works have been completed. Glass cladding was started and completed during the reporting period. The project is expected to be finished during Q Dilmunia Shopping Mall During the reporting period, the final designs were approved and the building permit received by the sub-developer. Construction is planned to commence during The full majestic height of The Treasure Essence at Dilmunia Essence at Dilmunia is a 300-apartment residential project by Bahraini real estate developer, United Tower Real Estate Development WLL, which will be built on an approximately 11,610 sqm land area. Construction is progressing on site and coordination with the subdeveloper is ongoing. Superstructure works have been completed during Q and the project is expected to be finished by end of Dilmunia Shopping Mall Design Canal View Naseej B.S.C., which purchased three mixed-use canal plots with a total area of approximately 13,068 sqm, have got approval on the architectural designs. This project, designed to develop four independent buildings linked by a podium and commercial gallery, will encompass 240 apartments. Utility and infrastructure drawings are being reviewed with the sub-developer. Geotechnical site investigations were completed in Canal View Plots Superstructure works on Essence of Dilmunia are now complete 6 Fund Report

7 Residence Sharq Residence Sharq, which has been recently offered to the market, will consist of a mix of apartments and duplexes. It will be built on a plot with an area of approximately 17,000 sqm. A project developed on the south seafront, it will encompass a mix of different types of apartments totaling 280 units. Design approvals were given to the sub-developer in December Utility and infrastructure drawings are being reviewed with the subdeveloper before submission for a building permit. Hanging Garden at Dilmunia The preliminary designs for this project, which covers three plots over a total land area of 20,375 sqm, was approved during the reporting period and the final design is under review. The project was named Best Mixed-Use Development Arabia at International Property Awards in Dubai in September 2016, and Best International Mixed Use Development at the International Property Awards for in London in December Residence Sharq South West Residential Development: The concept design for the 30,713 sqm plot, located in the southwest corner of Dilmunia, was submitted in Q Final designs are being reviewed and close cooperation is being maintained with the sub-developer. The project, being developed on the southwest seafront, will include a mix of different types of apartments and villas on the seaside, totaling 378 units. The Hanging Gardens Top View Upcoming Activities Development: Follow up with all sub-developers (continuous task) Implementing soft landscaping Starting of canal and marina detailed designs Infrastructure: Monitoring of progress of Phase 2 infrastructure works Preparing for Phase 3 infrastructure works SWRD Concept Design Mix 24 and 25: Tendering for design and supervision services was completed in Q on these two canal view plots, which cover a total area of approximately 9,830 sqm. Appointment of a consultant by the client, and therefore the design work, is planned to start during Q Fund Report

8 Appendix Central Bank of Bahrain Disclosure Requirements: The Fund has been extended until 2018, however, the investors were given the opportunity to exit the fund by exercising their in-kind redemption rights. Bankers: Ithmaar Bank B.S.C. Management Fees: The Fund Manager has suspended its Management Fees since October Placement Fees: The Placement Fee was 3% of the respective Commitment. Original Development Plan: According to the PPM, the development plan is to invest in the Development Land measuring approximately 650,000 sqm intended to be developed as a state-of-the-art Health Island exclusively for promoting health and wellness away from the hustle and bustle of the city. The Health Island with a total area of 1,250,000 sqm will be located in the north east of Muharraq Island of the Kingdom of Bahrain. Commercial Component; Residential Component (including: first-class condominiums; low-rise canal view condominiums; pier-side condominiums; canal residences; river apartments; and exclusive villas); and Landscape Component (including landscape; waterscape; and landforms). The original development plan remains unchanged. Utilisation of Proceeds: Amount Spent from 1 July 2016 to 31 December 2016 and on Cumulative Basis: From 1 Jul 2016 Till 31 Dec 2016 On Cumulative Basis Category Amount (USD) Percentage (%) Amount (USD) Percentage (%) Infrastructure Costs 6,350, % 55,217, % Fund Expenses 146, % 15,982, % Total 6,497, % 71,200, % Recipients of Material Amounts (above 10%): The Fund will have the opportunity to invest in the Infrastructure of the Development Land and realize its investment and returns through the sale of Parcels including Infrastructure up to the boundaries of the Parcels. The Development Land will be a mixed-use waterfront real estate project centered around health and well-being facilities and to be known as Dilmunia Island. It is contemplated that the Dilmunia Island project will include the following: Medical Component (including: Children s and Women Hospital; Research Centre; Wellness Hospital; Medical Aesthetic Centre; Diagnostic Centre; Nutrition Centre; Diabetic Centre; and Sports Medicine); Hotel Component (including: 5-Star Hotel offering Traditional Chinese Medicine; 5-Star Hotel offering French Holistic Treatment; 5-Star Hotel offering Thai Holistic Treatment; and 4-Star Hotel with Commercial); Supplier Amount (USD) % of Total Spent during the period Cebarco Bahrain 5,006,125 79% Mott MacDonald 922,096 15% Utilisation of Proceeds comparison with PPM: Costs Budgeted as per the PPM ( ) Cash and Cash Equivalent Funds utilised during H Development Land Infrastructure Costs Fund Expenses* Total *The cost overruns are attributed to the extension of the Fund. All amounts in USD million Bank Accounts held by Dilmunia Bank Amount (USD) Current Account as at 31 Dec 2016 Ithmaar Bank B.S.C. 4,852,389 Modaraba Accounts as at 31 Dec 2016 Ithmaar Bank B.S.C. 19,548,662 The company does not have senior management and it is managed by the Fund Manager 8 Fund Report

9 Current Board Members of the General Partner of the Fund: Name Date Elected Date Resigned Mohammed Khalil Al Sayed 5 Nov Abdulhakeem Al Mutawa 18 Sep Ayoob Yusuf Alawadhi 7 Dec There was no Board remuneration paid during the reporting period. Summary of Board resolutions from 1 July 2016 to 31 December 2016: a): Approving the Company s audited financials for the year ended 31 December b): Approving the Company s reviewed interim financials for the period ended 30 June c): Approving the appointment of Ansari Engineering Services to perform the design and supervision consultancy services required for the construction of the second 66kv primary substation at Dilmunia. d): Approving the sponsorship of the Bahrain Authority for Culture and Antiquities to support the Authority in organizing the Spring of Culture event in Bahrain for e): Approving prices of Plots No to known as South Residential Development. In relation to the Dilmunia project, The Fund Manager confirms that there are no active legal proceedings that have been filed against the Company, the Fund or its parent company, or any complaints brought by investors or any investigations by regulatory bodies (of which the Fund Manager is aware) during the reporting period. The Fund Manager confirms that the assets of the Company are free from any charges or pledges. The Fund Manager confirms that the Company has not undertaken any debt facility. 9 Fund Report

10 Condensed Statement of Financial Position as of 30 June 2016 Assets Cash and Balances with financial institution Development Properties Furniture and Equipment Amount Due from a Related Party Total Assets All amounts in USD 30 June December 2015 (Reviewed) (Audited) 24,401,201 19,075, ,048, ,021, ,515 2,192,621 2,192, ,642, ,294,544 Equity Partnership Capital Accumulated Losses Total Equity 185,000,000 (14,460,008) 170,539, ,000,000 (13,959,616) 171,040,384 Liabilities Advances from Customers Other Liabilities Total Liabilities 39,879,740 1,223,266 41,103, , ,565 29,254,160 Total Equity and Liabilities Net Asset Value per Unit based on 18,500 units outstanding 211,642, ,294,544 9,218 9,245 Condensed Statement of Profit or Loss and Other Comprehensive Income as of 30 June 2016 Income from Placement with a financial institution 30 June 2016 (Reviewed) 56,404 All amounts in USD 31 December 2015 (Audited) 2,101 Marketing and Advertising Expenses General and Administrative Cost Total Expenses (357,832) (198,964) (556,796) (86,388) (87,466) (173,755) Loss for the Period Other Comprehensive Income Total Comprehensive Income (500,392) - (500,392) (171,755) - (171,755) 10 Fund Report

11 Enchancing Life, Restoring Balance