Kuwait-listed Aayan Leasing and Investment Company announced on Monday that its subsidiary Aayan Real Estate Company has entered into an investment agreement covering the design, construction and operation of a property in Kuwait.

The agreement covers a 15-year investment period, preceded by an 11-month preparation phase.

The bourse filing didn’t disclose details on project location, asset type, counter party to the agreement but said the project carries an estimated annual investment value of around 336,000 Kuwaiti dinars ($1.1 million).

Aayan said the investment will be reflected in its consolidated financial statements through recognition of capital expenditure and liabilities from the date of signing. Operating results will be recorded once the project commences operations, subject to external auditor review.

Aayan Real Estate Company in partnership with Al-Enma'a Real Estate Company (ERESCO) was qualified by the Kuwait Authority for Partnership Projects (KAPP) for the Waterfront Real Estate Project – Phase 3 in the Sharq area of Kuwait City. The project was ultimately won by United Real Estate Company (URC).

Parent company Aayan Leasing and Investment Company had secured two loan facilities worth a combined $243.5 million over the past seven days, according to a Zawya report.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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