KUWAIT: Mabanee Real Estate Co achieved solid financial results in 2013, exceeding figures of previous years. Growth in net profit stood at 44 percent, a great leap compared to previous years. This is attributed to a number of factors, the highlight of which is the inauguration of the New Expansion of The Avenues.
Presenting the 2013 Annual Report of Mabanee Real Estate Co during the annual general assembly meeting, Chairman Mohammed Abdulaziz Al-Shaya said, "The annual report reflects the company's positive performance over the past year and the financial results that set Mabanee apart as a leading company in the local real estate market." Net profit came to KD 47.9 million (approximately $169 million) compared to KD 33.3 million in 2012, with share profit at 68.4 fils, he said. The company's financial statements indicate overall operational revenue of KD79.4 million, while increasing shareholder equity to KD229.87 million. Total assets grew to KD406.3 million. Based on these positive results, the Board of Directors recommended the distribution of 25 fils per share in cash dividends and 5 percent bonus shares of the paid up capital as at December 31, 2013 for shareholders registered in the company's records on the day of the General Assembly Meeting
Phase IV of The Avenues Excavation for the foundations of Phase IV of The Avenues has already commenced, and expect to be opened in approximately three years. This new phase will include a five-star hotel and an extension of the Grand Avenue and Prestige. It will also include the Electra District, similar to Times Square in New York, as well as the Plaza District, inspired by the Piazza San Marco in Venice. The new phase will also include the Orchid District which will house a number of boutiques with an overhanging garden and restaurants at the center. Moreover, it will include a number of entertainment centers out of our ambition to continue to make The Avenues a destination not just for shopping, but also the perfect place for spending quality family time and the number one place visited by tourists in Kuwait. Phase IV will be built at a cost of approximately KD 100 million ($350 million) and will add 50,000 sq.m.of leasable space. This will bring the total leasable area in the mall to around 320,000 sq.m. Several of the world's largest retailers have expressed interest in reserving leasable space in the new phase, given the success of The Avenues year after year. The Avenues is now one of the largest shopping malls in the world and is the number one destination and the most frequently visited location in Kuwait. Market research and tourism reports have started placing it on the regional tourism map.
The Avenues upon completion Upon the completion of future expansion projects, at an investment of around KD 500 million ($ 1.8 billion), the total leasable area of the complete project will come to around 370,000 sq.m. stretching across a land plot of 425,000 sq.m. The Avenues, upon completion, will be a unique project and one of Kuwait's finest tourism attractions, given its distinctive architecture and its aesthetics. With districts inspired by some of the world's most famous cities, The Avenues will become a comprehensive and leading shopping city that houses prominent international brands and entertainment centers.
Future vision Mabanee's vision and future plans include the execution of a number of real estate projects in Kuwait and the region, in line with market requirements. These projects will be of high feasibility to the company, especially given the availability of liquidity and the necessary expertise for the management of such projects. Mabanee will be assessing some promising real estate projects that can be included in the company's current and future plans, Al-Shaya added. As for the 9,516 sq.m. land plot that the company owns in Salmiya, the judicial process is in its final stages and the company is studying whether to develop it or sell it.
Thanks and appreciation "To conclude, and on behalf of the Members of the Board of Directors and all Mabanee employees, I would like to express my deepest appreciation to H H the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah and HH the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah. We pray that Almighty Allah continue to guide our leaders on the path of advancement of our homeland, Kuwait," Al- Shaya said. "On behalf of the Board Members, I would also like to thank all employees for their efforts, and our shareholders for placing their trust in us, which has motivated us to exert all efforts to achieve the goals, aspirations and strategies of the company," Al-Shaya concluded.
© Kuwait Times 2014
