Diyar advised by Charles Russell Speechlys

As the availability of low cost homes remains a topical issue across the Gulf, Charles Russell Speechlys has advised one of Bahrain’s leading private developers, Diyar, on the development and construction of circa 3,100 housing units on Bahrain’s largest master planned development project.

Charles Russell Speechlys’ advised and finalised the agreement between Diyar and the Ministry of Housing of the Government of Bahrain (MoH) in which the MoH has essentially committed to acquire social housing units, affordable housing units and supporting infrastructure from Diyar at a cost of over USD1 billion.

The project is extremely significant for Bahrain as it represents the single largest contract in terms of both size and value for the development of social and affordable housing in the Kingdom. The project will be procured on a phased basis and is based on a new form of public-private partnership (PPP) which has been specifically developed for this Project and reflects a move away from the previous form of PPP (substantially based on the PFI model from the UK), which had been used for other low cost housing projects in Bahrain. The Agreement is also the first of its kind to include provisions relating to the new Social Housing Finance Scheme in Bahrain, which is the result of a collaboration between the MoH and certain financial institutions within Bahrain to provide financial support to Bahraini citizens to acquire housing units through a subsidised programme.

Simon Green Partner and Middle East head of real estate and construction commented, “I am delighted that we have been able to assist on what is not only a major transaction for Bahrain, but also a transaction of significant importance to the GCC. It also emphasises the fact that we are seen as one of the ‘go to’ law firms in for large social infrastructure projects.”

The minister of housing, H.E. Basim Al Hamer, commented, “This is indeed a very important agreement as it is the largest agreement of its type for co-operation between the private and public sectors and will surely have far-reaching positive consequences for all citizens in the Kingdom.”