Kuwait: National Real Estate Company K.P.S.C. (NREC) announces that a subsidiary of the Company has entered into a sale agreement to sell its entire 50% stake in Mediterranean Investment Holding (MIH) in Malta to its partners, for a total consideration of €74 million (equivalent to approximately KD 26.4 million) with completion to take place no later than 30 June 2026.

NREC is expected to record a gain of KD 6.16 million in its 2026 financial results, primarily driven by the reclassification of previously recognized reserves into the income statement upon disposal. This gain is accounting in nature and does not impact the Company’s total equity or overall financial position.

This divestment marks the culmination of a successful investment, with the Company achieving a return exceeding three times its invested capital of €24 million since entering the investment in 2006, demonstrating the effectiveness of its disciplined investment strategy and value realization approach. Including dividends received from MIH, NREC’s investment in MIH will have returned total cash of €94 million since inception, representing almost 4x the initial investment.

The proceeds from the transaction will be directed towards debt reduction and capital structure optimization, thereby contributing to lower financing costs and strengthening the Company’s financial position. The transaction is also expected to enhance NREC’s financial flexibility and support the redeployment of capital into strategic, higher-return opportunities aligned with its growth objectives.

Commenting on the transaction, the Vice Chairman and CEO of National Real Estate Company, Mr. Faisal Jamil Sultan Al-Essa, said:

“This transaction represents a direct step in executing our strategy to maximize asset value and enhance capital efficiency. With a strong return and a strengthened financial position, we continue to allocate our resources through a disciplined approach toward more value-creating investment opportunities, thereby enhancing value for our shareholders.”

About NREC

Established in 1973 and listed on Boursa Kuwait, National Real Estate Company (NREC) is a leading real estate investment and development company operating across the Middle East and North Africa, with a diversified portfolio spanning retail, commercial, and residential assets. ENDS

For more information, please contact: Mageda Abbas – M: +965 66878225 – m.abbas@nrec.com.kw