Majaal, the industrial warehousing and logistics project of real estate developer First Bahrain, had a soft opening of its Phase 2 on the opening day of Gulf Industry Fair at the Bahrain International Exhibition and Convention Centre.

First Bahrain general manager and Majaal Warehouse Company managing director Amin Al Arrayed said, “We’re happy with the response so far.” He added that the company had received a number of serious enquiries and would know in about a month’s time how many of them would translate into firm leases.

“Primarily, enquiries have come from within Bahrain. However, multinationals with existing operations in the Gulf have also approached us,” said Al Arrayed.

Phase 2 is based on the feedback received from Phase 1. “We learned from customers who asked for things we could not supply in Phase 1. We incorporated them in Phase 2,” commented the official.

The improvements fit the requirements of larger companies. While Phase 1 has 12 tenants and units ranging from 250 sq m to 500 sq m, the minimum size for the second phase is 1,000 sq m. Additional features will include dock levelers that make forklifts unnecessary. The warehouses will have higher ceilings and more space for shelving. There will be more room for containers and a larger circulation path for trucks.

For the second phase, Majaal has appointed architectural and engineering firm Mohammed Salahuddin Consulting Engineering Bureau (MSCEB). It has reappointed Baker Wilkins and Smith (BWS) Middle East to provide cost management services and expects to select a main contractor soon. If work starts early in the first quarter there’s a good chance that early next year the second phase will have its doors open.

With a focus on small and medium enterprises (SMEs) and foreign direct investment, Majaal is developing a sprawling area of 60,000 sq m at the Bahrain Investment Wharf within Salman Industrial City in three phases at a total cost of around $45-50 million, with each phase covering 20,000 sq m and offering 12,000 sq m of leasable space. As well as warehousing spaces, it offers a range of value-added services including round-the-clock security, state-of-the-art information and communication technology (ICT) provisions and assistance on efficient design and use of spaces.

The Majaal project is located in close proximity to the new and modern Khalifa Bin Salman Port, Bahrain International Airport, Hidd Power Station and Bahrain International Investment Park. It is also a short distance away from the King Fahd Causeway to Saudi Arabia.  

Wide-ranging occupants
Phase 1, launched in February 2010, has had 75 per cent of its available space leased. Majaal’s occupants include Al Khaleej Development Company (Tameer), a leading real estate investment, advisory and property developer; Elias Industries, a pump manufacturer with a global client list; Gulf Polytex, a manufacturer of permeable sun shading systems and awnings; Freddy’s, an exclusive vehicle leather upholsterer; Fugro, an international engineering services company; a major regional bank and a pharmaceuticals firm, among others.

Al Arrayed said Phase 2 had the potential for signed leases even before it consolidated as people “now trust us” with the execution of the first phase. “If the market continues to be fair and we’ve seen good indicators of that, there are good chances we’ll have 80 per cent of space leased within 10 months from the start of operations,” he added.

The Majaal brand is set for wider recognition in the Gulf region, indicated Al Arrayed. “We’ve seen a lot of interest from people who think of Majaal as a model. The company has had discussions with parties in Oman and Saudi Arabia, but it does not mean someone from another state will not come in.”

As regards the $50 million mixed-use development in Janabiya, Bahrain, that the company is eyeing, Al Arrayed said Majaal was looking for market indicators that would support the project. The picture would become clearer when Majaal is able to collect some anchor tenants for the project’s commercial component who will drive further development. The residential component would follow commercial development. Unlike the commercial sector, there’s much more standardisation in the residential component and no need to have anchor tenants, he pointed out.

“We have had parties interested in the commercial segment. We’re looking for commitment,” Al Arrayed remarked.