National Real Estate said that those who collaborated in the Reem Mall project in Abu Dhabi has met the final requirements needed for a recent credit facility contract.
The contract is worth $457 million, according to a bourse statement to Boursa Kuwait on Monday.
National Real Estate noted that the latest developments will reflect on the company’s financial position by investing KWD 62 million ($207 million), representing the project’s capital, through National Real Estate and its subsidiaries.
Thus, National Real Estate will own a total share of 80.1% in the UAE-based Al Farwaniya Property Developments which executes and develops the project in Abu Dhabi. A total amount of KWD 62 million has been invested as registered on 31 December 2017.
National Real Estate, listed on Boursa Kuwait, clarified that the financial impact included a direct debt worth KWD 30 million in the form of a convertible loan of which KWD 17.3 million has been paid as on 31 December 2017.
The Kuwaiti company noted that with completing all the required conditions, Al Farwaniya Property will be an associate to National Real Estate.
It added that the invested amount will reflect on National Real Estate’s income statements ended on 31 December 2017, while the remaining amount will impact the financial statements during the project’s duration.