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Kuwait Authority for Partnership Projects (KAPP) announced on Tuesday that it has awarded Waterfront Real Estate Project - Phase 3, located in the Sharq Area of capital Kuwait City to United Real Estate Company (UREC).
The project will be implemented under a 15-year Build-Operate-Transfer (BOT) usufruct arrangement and covers the rehabilitation, renovation, development, major and routine maintenance, management, and operation of the property.
In January, UREC disclosed to the Kuwait stock exchange that it had submitted the highest financial bid in the tender competition, without revealing the value.
A total of six consortia and a single company – UREC - had submitted bids for the project.
Local media reports, citing KAPP, said the winning bid amounted to more than 13.2 million Kuwaiti dinars ($43 million) representing a significant increase compared to the KWD 28,200 ($92,000) originally generated when the project was first commissioned.
KAPP described the award as a “qualitative leap” in the financial return achieved for the state.
On 20 February 2023, Kuwait-listed National Real Estate Company (NREC), the property’s previous operator, had said in a stock exchange disclosure that the cancellation of its 20-year operating contract would result in an estimated KWD 5 million ($16.3 million) annual net revenue loss.
The waterfront project was tendered alongside the Al Muthanna Complex Real Estate Project, which KAPP recently awarded to a consortium led by local firm Real Estate House.
(Writing by N Saeed; Editing by Anoop Menon)
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