Al Mazaya acquires tower at ‘Kuwait Business Town’ project
Company plans to turn new assets into income boosting sources: chairman
KUWAIT CITY, April 15: Al Mazaya Holding Company has concluded an exchange deal with the National International Holding Company and has taken the opportunity to acquire a tower at the Kuwait Business Town project in the heart of the Kuwaiti capital, as well as two land plots under construction at the Queue Point project at Al Liwan in Dubai, and selling office units with a total area of 101,000 sq ft owned by Al Mazaya at Jumeirah Lake Towers in Dubai to the National International Holding Company.
Regarding this issue, the Chairman of the Al Mazaya Board Rasheed Al Nafisi said: “This is one of the main steps in our 2013 action plan, in which the company has been able to include new real estate assets that will play a main role in enriching the company in the short and the long term. The company has also been able to exit from the office units put up for sale in its tower at Jumeirah in Dubai, which enhances the product diversity of the real estate company and has contributed to a better distribution of its assets.”
Al Nafisi continued: “Adding a new tower to Al Mazaya’s assets is an important and strategic step, especially considering that this tower is within the complex of towers within which Al Mazaya was director of development — the Kuwait Business Town project — so the company can take advantage of being fully aware of the details and features of the construction and the implementation of the tower” he added.
Al Nafisi went on to say that Al Mazaya towers in this project have created “a dynamic economic environment in the heart of the capital, which is growing in terms of the economic, investment, financial and banking sectors, and we are pleased that Al Mazaya has been able to reach a 85 percent rental rate in one tower so far”.
Regarding the new tower, he said that the land area is about 1000 m2 with a 26 storey building to serve the office sector and the tower has been designed with so-called “smart systems”, which incorporate the latest technological systems and standards that have been implemented by major construction companies in Kuwait along with major engineering consulting offices.
He also pointed out that Al Mazaya has a marketing plan for giving this tower a new identity and new marketing services in the near future, capitalizing on its privileged location on the centre of the city, overlooking Omar bin Al Khatab and Khalid bin Al Waleed street, and near the major banking and investment institutions in the heart of the capital.
At the same time, Al Nafisi has reported that the ownership of the two land plots at the Queue Point project at Al-Liwan in Dubai is considered a positive outcome of the deal, under which Al Mazaya is already processing 25 housing coupons at the same project in which Al Mazaya already received up to 80 percent advance sales. Meanwhile, the project of the housing units is rapidly progressing and will be delivered to its owners as planned during the 2013/2014 period.
Reflecting on this deal as it pertains to the company’s budget and future profits, Al Nafisi said that the deal will yield a net profit of 658,000 dinars, and will be included on the P&L statement for Q2/2013, while adding a new and distinct real estate asset to the company stable, and one which will positively impact the company’s asset sheet at the end of the fiscal year 2013. Al Mazaya will pay 6 million dinars as part of the deal.
At the end of his statement, Al Nafisi expressed his hope that Al Mazaya would continue to implement its action plan for 2013 and achieve the positive outcomes that will bring strong results for the company and shareholders alike.