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Company Case BB - Case Study
Marketing Management (2020)
Hebron University
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Warning: TT: undefined function: 32 Hebron University
MBA Program
Marketing Management.
To-Prof: Samir Abuznaid.
From: Shireen Al-Qawasmeh.
Case Study Bahrain Bay Development
Subject Page NO
- Company Case
- Case Study Analysis Bahrain Bay: Building Customer Relations For The Future
- I. Bahrain-Based Investment Group (GFH)
- II. Arcapita
- III. Background
- IV. Why Bahrain Bay?
- V. Bahrain Bay Vision
- VI. Bahrain Bay Mission
- VII. Quick Facts
- VIII. Key Value
- IX. Bahrain Bay Investment Merits
- X. Industry Analysis
- XI. The Macro Analysis
- XII. SWOT Analysis
- XIII. “Bahrain Bay” Case Study
- Questions
- Conclusion
the operation was not undertaken lightly, advice and support was sought from a variety of sources, Abdulmalik explained. “The project team has taken soundings from the marketplace throughout the planning stage. Response from every quarter has been excellent, and Bahrain Bay BSC is already in discussions with several interested parties to participate as developers of the other subprojects of Bahrain Bay ”. By March 2008, the development had succeeded in selling 60 percent of the units to domestic and international companies. In the beginning, many analysts had believed that it was a mad scheme to make a new island and then try to sell the land on it at a premium to hotel developers and retailers. The analysts could not have been more wrong .The project was able to release the news at the global property exhibition, MIPIM in Cannes, France, where the marketing teams for the project were attending the exhibition and seeking additional investors and developers. It was an ideal event, attracting nearly 26000 property and investment professionals from around the world. In March 2008, Bob Vincent, the chief executive of Bahrain Bay, said, “This news confirms that international and regional developers and investors are committed to our vision of creating a new waterfront community for the rapidly developing north short of Manama, the vibrant hub of Bahrain’s business district. As the economy of Bahrain grows and diversifies, a new community will be created that will offer a way of living and working designed for the 21st century ”.So successful was the project so far, that the investors and developers were already looking for other sites around the world where island-making projects could be launched. Nothing so far had been left to chance with the project. Alloptic, a U.- based company that provides optical access networks had been brought onboard in 2007. The intention was to provide Bahrain Bay with a next- generation access network together with a complete communications, entertainment, security, and building management system. The idea was that Bahrain Bay would offer constant wireless broadband connectivity and would allow both residents and visitors total access to information and communications .Even the background music in public areas could be changed if required. Many of the facilities services would also be controlled and automated through the new network. Vincent said of this part of the project: “Bahrain Bay is committed to helping develop a commercially sound and ecologically viable approach to development.
Our goal is to ensure that Bahrain Bay is a self-governing and self- sustaining community, supporting an exceptional quality of life for residents, businesses, and visitors alike. In developing the Bahrain Bay community, we recognized early on the importance that digital connectivity plays in both residential life and creating enhanced productivity for businesses. Identifying, locating, and deploying the right communications infrastructure has been an integral part of our development process. We believe that the Alloptic solution provides us with the worldclass infrastructure Bahrain Bay demands ”.
By July 2008, the project had moved on even further in terms of sales and marketing. The managers of the project could now announce that they had sold 80 percent of the land “We have been marketing the project for about 16 months now, and over the next 12–24 months, we will see the remaining parcels being sold,” said Vincent. That success has been built around willingness to take advice from key stakeholders within the project, including our shareholders and government, about what they would like to see as their final outcome, and following their advice and delivering their expectations. It has also been enhanced through our own initiatives, such as spending the time and effort to go offshore and exhibit the opportunity of Bahrain Bay. So far, we have attracted CapitaLand, one of Asia’s largest developers, who will be developing a $800 million development within the project. We have also attracted developers from India, France, and the United States. Sub regional developers from Kuwait, Saudi Arabia, the United Arab Emirates, and Bahrain have also committed and are progressing their design development process ”. Bahrain Bay is not the only development taking place and firmly positioning Bahrain as a major financial and commercial center. Other key projects include the Bahrain Investment Wharf, Bahrain Financial Harbour, Bahrain City Centre, Durrat Al Bahrain, and Amwaj Islands. Between them they are contributing 27 percent average growth per annum to the country’s real estate sector. In order to imbed the project into the community, Bahrain Bay decided to sponsor and make a substantial donation to the Busaiteen Football Club. Vincent explained why : “As Bahrain Bay develops a new waterfront community along the north shore of Manama ,it is imperative that we
Case Study Analysis
I. Bahrain-Based Investment Group (GFH)
a dynamic financial investment group with a clear vision to develop a high growth, diversified investment and commercial portfolio. GFH actively seeks unique opportunities to grow the value and potential of its investments. To achieve industry-leading performance, GFH deploys its deep market insight, innovative thinking and investment intelligence, which are hallmarks of the brand and its approach.
GFH BRAND is built on a clear promise to their investors, that they will provide investment opportunities with exceptional performance capability. While the investment deals they manage are global and highly complex, GFH clients’ expectation that they will be handled with simple efficiency and exited with the greatest possible return With experience from some of the world's top financial institutions, GFH’s executive team is a formidable asset to GFC brand.
GFH’s ability to secure attractive market opportunities and to tailor Islamically-compliant financial solutions has been built on a unique model for investment and value creation. GFH values the relationships it has with its shareholders and investors. they believe in providing clear, concise and easily digested investor information for their review and reference in a timely fashion.
Source : GFH Financial Group BSC , Condensed Consolidated Income Statement For The Three Months Ended 31 March 2019.
Source: GFH - Bahrain Based Financial Investment Group, Link: gfh.
II. Arcapita
Mission Arcapita’s mission is to be the world’s leading provider of Shari’ah- compliant alternative investments.
Values Originality: Arcapita aim to provide innovative and distinctive alternative investment opportunities Integrity: Arcapita attract and retain people with the courage to do the right thing at all times and in all circumstances Transparency: Arcapita are committed to full, accurate, and timely disclosure of information to our stakeholders Professionalism: Arcapita are committed to recruiting and retaining the best people with a diverse range of expertise and experience. 1
III. Background
A joint venture between Arcapita and a Bahrain-based consortium of investors that, through a visionary master plan, is helping to write the story of Bahrain’s tomorrow. The project’s vision is the epitome of a 21st century urban metropolis with residential, commercial and retail spaces – all strategically located around the Manama waterfront. The Kingdom’s first Four Seasons Hotel and the headquarters of Arcapita Bahrain Bay are the anchor developments within Bahrain Bay. The infrastructure is complete and land parcels sold, creating a valuable legacy for future generations. The vision and planning process for Bahrain Bay commenced in 2005, with construction work starting in 2007. The concept was based around an island connected by two bridges forming an inner harbour. The total land area is 450,000 sq m and approximately 40 buildings are planned for the site. A sustainable and environmentally friendly approach has been used in the site’s development with district cooling, wastewater management, irrigation and greenery.
1
The Value Creation Story, ARC Web Case story Bahrain Bay, Investment: Bahrain Bay
Website: bahrainbay Categories: Real Estate.
From the outset, the founders of Bahrain Bay aimed to create a unique 21st century metropolis, ethically and sustainably designed to be a center of excellence and a true investment destination. For this vision to come to fruition, talented and reliable partners have been attracted at every stage. Skidmore, Owings & Merrill LLP, one of the most influential architecture, interior design engineering and urban planning firms in the world drew up the initial master plan and a joint venture with European energy services company, Veolia, was established to supply district cooling for the entire development in the most sustainable way possible. Moreover, beautification was considered at every stage with renowned local landscapers Nass developing Bahrain Bay’s promenade. Cultural considerations and tourism potential have been factored in through partnership with the Bahrain Authorities for Cultural and Antiquities (BACA) and the Bahrain Tourism & Exhibition Authority (BTEA). Bahrain Bay has since been a favored location for the annual Sea Festival that pays homage to the Kingdom’s rich sea fearing heritage, family events such as the Food Festival, music concerts featuring renowned, international artists such as UB40 and Sir Tom Jones to name a few.
Source: Bahrain bay
IV. Why Bahrain Bay?
The foremost reason for selecting Bahrain Bay for investment was its strategic location. Positioned at the center of Manama, alongside the financial district and distinguished by an extensive waterfront, it made commercial sense. A new bridge and interchange is under development, which will provide an even faster link to Muharraq and the airport, and in the longer term, to a new outer causeway and bridge to Saudi Arabia. Moreover, Bahrain as a whole is geared for business, being a main trading gateway and the financial center of the Middle East with over 400 banks and 140 insurance companies just being a single part of a modern and diversified economy. Hence, Bahrain remains an attractive business proposition and benefits from the lowest operating and living costs in the GCC.
V. Bahrain Bay Vision
From its outset, Bahrain Bay’s vision has been to create a unique 21st century ultra-modern, advanced metropolis, designed to be a centre of excellence and practicality. A series of islands housing stunning structures, interlinked by modern highways giving the impression of a vast expanse of tamed blue waters. This has happened! The development is to be prestigious, adding luxury with compatibility, it is to be easily accessible and incorporate sustainability and above all create opportunity and something that future generations; one and all will utilize and benefit from.
Bahrain Bay, when complete was always seen as a ‘desired destination’, a living complex which remains alive, surprising and stimulating, rather than just another compound of office and residential blocks feeding business. Bahrain Bay is forecast to be ‘artistic’ and encouraging and indeed fashionable. Thoughtful, intelligent planning was to incorporate an actual lifestyle which the community could nurture.
For this to come to fruition, multi-purpose, multi-facility features were built in with ample flexibility for future advancements as required. The
vision also included a development that stood imposingly distinct yet blended perfectly with distance from the surrounding city.
The vision was a vision in itself which makes Bahrain Bay something you cannot miss physically and it is hoped for the future that it will become a desire within us all, to experience what has been envisaged.
VI. Bahrain Bay Mission
“Bahrain Bay’s Mission is to ensure that the project will be self- governing and self-sustaining community, supporting an exceptional quality of life for residents, businesses and visitors.” Concentration on size and aesthetics/art. "Futuristic and has urban designs". Unique. High Standards. Creating and Maintaining Communities. Concern with people's quality of life. Creating jobs. Social Fabric. "Not only to gain profit". Creates a variation but distinct neighborhoods. Future for the Environment. Bahrain bay's promise of "helping a commercially sound and ecologically viable approach to development". It is an international property event hosted in Cannes, France every march. It includes a trade show that its organizers describe as a market for international property trade. This event last for four days.
VII. Quick Facts
Date Started Vision and planning process commenced in 2005 Masterplan finalized June 2006 Physical start on site July 2006 Investors Arcapita Bahraini consortium of investors Type of development Master planned waterfront development designed around vibrant neighborhoods of residential, commercial, and retail spaces, all based upon the unique concept of an island connected by two bridges forming an inner harbour Anchor Developments Arcapita Headquarters Four Seasons Hotel Main Consultants / Contractors for Master Developer
Skidmore Owings & Merrill (SOM) Atkins International. Dalkia MACE HAJ Boskalis Westminster AMA Main Consultants / Contractors for Master Developer
40 Approx
Total gross floor area 1 million SQ m Total land area 450,000sq m Bahrain Bay Contact 00973 17505555
Source : bahrainbay.
Bahrain Bay is a master planned community in the kingdom.
VIII. Key Value
ARCAPITA Key Value Creation Achievements Realizing a well-designed masterplan in phases Sale of land plots A sustainable infrastructure complete with utilities and amenities Establishment of a technical interface office that assists developers and investors through building permits & local authority approvals Professional support to developers in accelerating the construction of their projects Considerately designed public realm that is a popular venue for social and community events. GFH has focused on setting a benchmark with regard to the creation of unique investment opportunities that provide strong returns and diversification in developing economies. continue to seek unique opportunities in the domain of Wealth Management, Commercial Banking, Asset Management and Real Estate Development.
Company Case BB - Case Study
Course: Marketing Management (2020)
University: Hebron University
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